Top Reasons Why Dogecoin Price Might Be Gearing Up for a Breakout

Key Insights:

• Dogecoin price is consolidating within a symmetrical triangle pattern, and eyeing a major breakout move.
• Elon Musk’s attorney Alex Spiro is set to chair a new public company targeting a $200 million Dogecoin treasury.
• The SEC is weighing generic crypto ETP listing standards, potentially setting the stage for DOGE ETF approvals.

Meme coin enthusiasts are rooting for Dogecoin price (DOGE) recovery. Few recent indicators hint that a major price breakout could be in sight.

The world’s largest meme coin is trading above a key support level, showing resilience even as broader crypto markets remain sluggish. A potential break below this level could expose DOGE to a sharper downtrend. But things may play out differently if buyers continue to hold this support level.

Looking at the bigger picture, investor optimism for DOGE is rising due to a few fundamental catalysts. To put things into perspective, US regulators are moving closer to greenlighting crypto exchange-traded funds (ETFs) for altcoins like Dogecoin.

Below, we’ve highlighted the top reasons why Dogecoin’s price could be ready for a breakout move.

Why Dogecoin Price Is Primed for a Breakout From This Support Level?

The daily chart of Dogecoin price is showing a consolidation pattern as bulls step up to defend the meme coin’s 200-day exponential moving average (EMA) support. DOGE was trading near the $0.21 level at the time of writing, just above the 200-day EMA.

DOGE bears have been testing this EMA support for over ten days, but the bulls are actively preventing a pullback below this level. This is precisely why a decisive rally above or below the $0.21 level could lead to a breakout move.

Traders should also look out for a potential bearish crossover of the 20-day EMA with the 50-day EMA, as that would confirm a near-term bearish trend for the Dogecoin price.

Interestingly, the price has been coiling into a classic symmetrical triangle pattern. A streak of lower highs and higher lows defines this pattern, typically preceding a decisive breakout. It shows how volatility has been compressing as DOGE gears up for its next big move.

Looking ahead, a potential close below the 200-day EMA ($0.20 level) could lead to a sluggish phase for the meme coin. But a decisive close above the 0.22 resistance could confirm a bullish breakout from the symmetrical triangle pattern.

With Bitcoin’s dominance falling, many market commentators are also hopeful for an altseason to unfold in the coming weeks. Such a scenario could set the stage for a more decisive bullish breakout for Dogecoin price.

Elon Musk’s Attorney to Lead $200 Million Dogecoin Investment Company

From a fundamental standpoint, Dogecoin price has received a high-profile vote of confidence. Elon Musk’s attorney, Alex Spiro, is slated to chair a newly launched public company dedicated to investing in Dogecoin.

The company has a target of raising $200 million for a DOGE treasury. This venture, backed by the House of Doge, would hold large reserves of Dogecoin on its balance sheet and offer investors stock exposure to the meme coin’s price movements.

The plan is still in its pitching stage, with details on the timeline yet to be disclosed. However, the idea itself has been enough to stir excitement among Dogecoin believers.

Spiro’s involvement is particularly noteworthy. Not only is he a close ally of Musk, but he has also successfully defended Musk in a 2024 lawsuit that alleged the billionaire had manipulated the price of DOGE.

His leadership in the $200 million DOGE treasury initiative shows that influential figures in Musk’s circle are actively working to integrate Dogecoin into mainstream finance.

Regulatory Tailwinds and Impact on Dogecoin Price

The regulatory landscape is also tilting in the favor of Dogecoin price, providing another reason a bullish breakout may be in the making. The US SEC is nearing a decision on new generic listing standards for exchange-traded products (ETPs) that cover commodity and crypto assets.

In simple terms, major US stock exchanges have requested rules that would allow them to list crypto ETFs under a standardized framework. This would eliminate the need for special approvals for each new product.

The SEC could approve these rule changes as early as late September. If that happens, it would pave the way for a wave of new crypto funds to launch much faster than before.

Dogecoin is clearly in the conversation for upcoming ETFs, and several asset managers are already positioning for it. Grayscale has recently filed to create a Dogecoin ETF, joining similar applications from firms like Rex Shares/Osprey and Bitwise.

Just as the first Bitcoin ETFs opened the gates for institutional money into BTC, a regulated DOGE fund could spark new demand and liquidity for Dogecoin. This is why investors are betting that DOGE’s next big move could be to the upside.