Dogecoin’s Bullish Setup: Can DOGE Hit $5 Amid ETF Speculation?

Dogecoin (DOGE) displays a cup-and-handle pattern, a bullish technical formation often preceding a significant price surge after a period of accumulation. This pattern, emerging after DOGE's all-time high in May 2021, suggests a potential rally if key resistance levels are overcome.

Dogecoin's Price Action and Key Resistance Levels

Following a breakout above a descending trendline in early 2024, Dogecoin climbed to $0.2408 before retracing to $0.1934 (a 19.28% pullback). Analysts view this as a potential retest of the breakout zone, a typical occurrence before further upward movement.

Sustained support around $0.18–$0.19 could fuel a price increase. Key resistance levels to watch include:

• $0.50 – A significant psychological and technical barrier.
• $0.75 – A crucial level from Dogecoin's 2021 rally.
• $1.00 – A critical milestone potentially triggering price discovery.

Long-term projections even suggest a possible move towards $5.00, although further confirmation is needed.

Market Indicators and Trading Volume Trends

At the time of writing, Dogecoin traded at $0.1935 with a 24-hour trading volume of $2.71 billion. Over the past 24 hours, DOGE declined 11.59%, and weekly losses stand at 5.70%. Market capitalization is $28.64 billion.

The Relative Strength Index (RSI) sits at 34.74, nearing oversold territory, hinting at a potential rebound if buying pressure increases. While the MACD indicator remains bearish, the histogram shows diminishing selling pressure.

Open interest decreased by 15.34% to $1.64 billion, and overall trading volume fell 30.22% to $4.77 billion, suggesting a temporary market cooldown. However, options volume surged 37.36%, indicating heightened speculative activity.

Maintaining a price above $0.19, coupled with increased volume, could lead to a recovery towards $0.21–$0.22. Conversely, a break below $0.18 might trigger further losses.

Bitwise's Dogecoin ETF Proposal Fuels Speculation

Investor interest in Dogecoin intensified following Bitwise Asset Management's application for a Dogecoin ETF.

On March 3, NYSE Arca submitted a 19b-4 proposal to list and trade shares of the Bitwise Dogecoin ETF, structured as a Delaware statutory trust. This ETF would offer institutional investors DOGE exposure without direct ownership.

The rise of crypto-based ETFs fuels speculation that this proposal could catalyze DOGE's next bull run. Some analysts suggest sustained momentum could propel Dogecoin into a price discovery phase, potentially reaching $5.00 long-term.