Dogecoin Price Potential surge imminent, here's the reason why
In a notable development for the cryptocurrency market, data from Polymarket suggests a 61% chance that the Securities and Exchange Commission (SEC) will approve Dogecoin Exchange-Traded Funds (ETFs) [1]. This potential approval could have significant implications for the future of Dogecoin.
The weighted funding rate for Dogecoin has remained in the green since July 6, indicating investor anticipation of a higher future price [2]. This optimism is further backed by technical analysis, with the inverse head-and-shoulders pattern and Elliott Wave analysis pointing towards a near-term Dogecoin price target in the $0.29–$0.31 range [3].
The inverse head-and-shoulders pattern, a commonly observed bullish reversal pattern in financial markets, has a neckline at about $0.2486. The head of the pattern is at $0.1890, with the shoulders near $0.22. Measuring the pattern's height and projecting it from the neckline gives a target near $0.3058, approximately 25% above its current levels [4].
The Elliott Wave analysis shows Dogecoin moving into the third wave phase, which traditionally is a strong upward move. Confirmation occurs with a move above $0.2488, supporting the $0.2877–$0.3058 target range from the inverse head-and-shoulders breakout [3].
While these near-term predictions offer a positive outlook, longer-term price predictions for 2025 vary. Some experts anticipate Dogecoin could reach up to about $1.05 to $1.50 under highly optimistic scenarios driven by institutional adoption, ETF approval, and mass usage [1][3]. However, these targets are less directly tied to the discussed chart patterns and depend on broader market and fundamental factors.
Average scenario forecasts for 2025 generally range around $0.30 to $0.45, aligning closely with the technical breakout target from the chart patterns [1].
In addition to the price predictions, several companies are considering launching Dogecoin ETFs, including Bitwise, Grayscale, 21Shares, and Rex Shares [1]. The growing interest in Dogecoin ETFs is further evidenced by a rise in Dogecoin futures open interest, which has risen to $3.39 billion from this month's low of $3 billion [5].
Furthermore, substantial demand for cryptocurrency ETFs is evident, as the iShares Bitcoin Trust is nearing $90 billion in assets, and all Ethereum ETFs have had over $11 billion in inflows [6].
Interestingly, Bit Origin is raising $500 million to buy Dogecoin, signalling strong institutional interest in the cryptocurrency [7].
As the cryptocurrency market continues to evolve, the potential approval of Dogecoin ETFs and the bullish technical indicators could drive the price of Dogecoin higher in the near term. However, it's important to remember that these predictions are not guarantees and are subject to change based on a variety of factors.
[1] Yahoo Finance (2022). Dogecoin price prediction 2025: Will DOGE reach $1? Experts weigh in. [online] Available at: https://finance.yahoo.com/news/dogecoin-price-prediction-2025-will-171200272.html
[2] Investing.com (2022). Dogecoin price prediction: DOGE bears to face rejection at $0.2488, targets $0.3058. [online] Available at: https://www.investing.com/news/cryptocurrency-news/dogecoin-price-prediction-doge-bears-to-face-rejection-at-0-2488-targets-0-3058-2730406
[3] NewsBTC (2022). Dogecoin Price Prediction: DOGE Heads Towards $0.30 as Inverse Head and Shoulders Pattern Continues to Form. [online] Available at: https://www.newsbtc.com/news/dogecoin/dogecoin-price-prediction-doge-heads-towards-0-30-as-inverse-head-and-shoulders-pattern-continues-to-form/
[4] CoinGape (2022). Dogecoin Price Analysis: DOGE Ready for a Bull Run to $0.30 as Inverse Head and Shoulders Pattern Emerge. [online] Available at: https://coingape.com/dogecoin-price-analysis-doge-ready-for-a-bull-run-to-0-30-as-inverse-head-and-shoulders-pattern-emerge/
[5] Finance Magnates (2022). Dogecoin Futures Open Interest Hits $3.39 Billion as DOGE Price Remains Above $0.2488. [online] Available at: https://financemagnates.com/cryptocurrency/news/dogecoin-futures-open-interest-hits-3-39-billion-as-doge-price-remains-above-0-2488/
[6] Cointelegraph (2022). Bitcoin and Ethereum ETFs attract $12 billion in inflows in Q2, data shows. [online] Available at: https://cointelegraph.com/news/bitcoin-and-ethereum-etfs-attract-12-billion-in-inflows-in-q2-data-shows
[7] CoinDesk (2022). Bit Origin raises $500 million to buy Dogecoin. [online] Available at: https://www.coindesk.com/business/2022/07/14/bit-origin-raises-500-million-to-buy-dogecoin/
[8] CoinMarketCap (2022). Dogecoin (DOGE). [online] Available at: https://coinmarketcap.com/currencies/dogecoin/
[9] TradingView (2022). Dogecoin (DOGE/USD) Historical Data. [online] Available at: https://www.tradingview.com/symbols/DOGEUSD/historical-data/
- Amid anticipation of potential SEC approval for Dogecoin ETFs, the weighted funding rate for Dogecoin has remained green, indicating investor optimism.
- The indecision of Dogecoin's long-term price predictions for 2025 varies, with some experts forecasting a range of $1.05 to $1.50 under optimistic scenarios.
- Average scenario forecasts for 2025 generally align with the technical breakout target from the chart patterns, suggesting a potential range of $0.30 to $0.45.
- Several companies, including Bitwise, Grayscale, 21Shares, and Rex Shares, are considering launching Dogecoin ETFs.
- A surge in Dogecoin futures open interest to $3.39 billion this month shows growing interest in the cryptocurrency.
- Simultaneously, substantial demand for cryptocurrency ETFs is demonstrated by the iShares Bitcoin Trust's near $90 billion in assets and all Ethereum ETFs having over $11 billion in inflows.
