Dogecoin Ascending Wedge Pattern Sparks Optimism as Grayscale Seeks ETF Approval

Key insights

• Dogecoin forms an ascending broadening wedge on the weekly chart, with analysts eyeing a $1.4 target.
• Grayscale seeks approval for a spot Dogecoin ETF, with Coinbase Custody named as the proposed custodian.
• Trading volume near $1B daily supports Dogecoin’s momentum as traders track $0.30 and $0.50 resistance levels.

Dogecoin (DOGE) has drawn renewed attention after technical analysts pointed to a bullish chart formation, while Grayscale moved closer to launching a spot Dogecoin exchange-traded fund (ETF). These two developments have brought optimism to the broader crypto market as traders consider both technical and institutional drivers.

Technical Analysis Suggests $1.4 Target

Crypto analyst Trader Tardigrade suggests that Dogecoin is forming an ascending broadening wedge on the weekly timeframe. According to his analysis, the pattern could push Dogecoin’s price to $1.4 if confirmed. This target reflects over a tenfold increase from current levels, though the analyst emphasized the need for confirmation through trading activity.

An ascending broadening wedge is formed when both support and resistance lines expand outward, while the price makes higher highs and higher lows. Tardigrade noted that Dogecoin has found strong support near the $0.10 to $0.12 range. A breakout above resistance near $0.20 could signal the start of a larger upward move.

Other analysts have pointed to historical cycles when Dogecoin followed similar formations before large rallies. Galaxy highlighted on X that the DOGE chart is a work of art and the similarities between cycles are hard to ignore. The comparison reflects the view that Dogecoin’s current structure mirrors earlier growth phases seen during past market upswings.

Grayscale Files for Dogecoin ETF

Subsequently, Grayscale announced it had filed an S-1 registration with the U.S. Securities and Exchange Commission for a new product named the Grayscale Dogecoin Trust. If approved, it would become the first spot Dogecoin ETF available to U.S. investors.

The ETF, proposed to trade under the ticker GDOG on NYSE Arca, would hold Dogecoin as its only asset. According to the filing, Coinbase Custody will serve as custodian. The shares will be issued and redeemed in large blocks of 10,000, settled in cash rather than Dogecoin. T

News of the filing lifted Dogecoin’s price nearly 2%, to $0.2274 at press time. Market observers noted this filing follows Grayscale’s push into single-asset funds, reflecting growing demand for crypto investment.

Market Sentiment and Key Levels

The combination of a bullish technical setup and institutional interest has stirred strong discussion across the crypto community. While technical traders are focusing on breakout levels, market sentiment is also shaping Dogecoin’s near-term outlook. Increased activity from retail traders and growing mentions on social media have been observed in recent sessions.

Volume remains a central factor in Dogecoin’s performance. Recent daily trading activity has ranged between $500 million and $1 billion, providing liquidity for larger moves. Resistance is seen near $0.30 and $0.50, while support remains between $0.10 and $0.12. A weekly close above $0.50 may confirm further gains.

Past cycles show Dogecoin has often rallied strongly when sentiment aligned with favorable technicals. In 2021, retail-driven demand pushed its price to record levels. While current conditions differ, many traders are watching for signs that history could repeat.

DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.