The last 24 hours have seen a big 6% decline in Dogecoin’s price motion, marking a swift reversal from the bullish momentum two days ago. This rapid decline is concerning, especially because it aligns with events that were expected to generate strong bullish momentum for the meme coin.
The recent news of DOGE ETF filings generated significant anticipation throughout the crypto community and on social media, with many expecting the filings to drive increased institutional interest and spark a rally. This leaves room for questions as to how the meme coin’s price is now declining.
Removal Of Shiba Inu Imagery Dampens Sentiment
Dogecoin’s price decline comes at a time when optimism surrounding DOGE ETF filings should ideally have strengthened the token’s performance. Certainly one of the numerous contributors to Dogecoin’s price slump was the removal of Shiba Inu imagery from the D.O.G.E website. The D.O.G.E is the newly created Department Of Government Efficiency, which was signed into law by US President Donald Trump.
Despite having no direct utility or connection to DOGE, the department’s acronym shares an uncanny resemblance with the meme coin’s ticker. Adding to the interest, the department is anticipated to be led by Elon Musk, who’s popularly generally known as the Dogefather because of his vocal support for Dogecoin.
When the D.O.G.E. website launched just two days ago, it prominently featured the enduring Shiba Inu dog image that has change into synonymous with Dogecoin. This surprising inclusion caught the eye of the crypto community, especially Dogecoin enthusiasts. Many interpreted the featured image as a deliberate nod to the meme coin and a powerful connection between the 2, with its price and trading volumes experiencing a temporary surge.
Nevertheless, it could seem that the euphoria has died down as quickly because it began after the image had been removed. This has also seen a corresponding decline in the value of DOGE, with trading volume also witnessing a drastic 75% drop in 24 hours.
Dogecoin ETFs To Send Price Flying High
Recent filings for Exchange-Traded Funds (ETFs) tied to DOGE by asset managers REXShares and Osprey Funds generated a big load of interest within the crypto community. Shortly after, crypto index fund manager Bitwise also filed for a Dogecoin ETF within the state of Delaware. The strategic timing of those filings coincides with the inauguration of a pro-crypto administration within the US, which could provide favorable regulatory environments for such financial products tied to cryptocurrencies.
Some crypto experts have predicted that an eventual launch of a Dogecoin ETF will send the value of Dogecoin to latest highs. For instance, crypto analyst Ali Martinez predicted that a Dogecoin ETF will send the meme coin to $15. This price goal is grounded on technical evaluation of an uptrend channel that Dogecoin has been trading in since 2016.
On the time of writing, DOGE is trading at $0.35 in a falling wedge pattern. Technical evaluation of the falling wedge suggests that the meme coin might shoot as much as $0.39 again inside the following 24 hours.
Featured image from iStock, chart from Tradingview.com