Key Insights:
- Dogecoin has held strong at $0.209 for 50 days, raising trader expectations of a significant breakout.
- REX Shares may launch the first U.S. Dogecoin ETF next week, following its Solana ETF strategy.
- Despite rising 116% in a year, Dogecoin trades far below its 2024 peak, consolidating near $0.2129.
Dogecoin ($DOGE) has held the $0.209 support level for nearly two months, raising hopes of a significant breakout among traders. The cryptocurrency has tested this price point several times, showing resilience while investors await possible market-moving events.
Dogecoin Technical Support at $0.209 Tested Repeatedly
Crypto analyst Ali Charts noted that $0.209 has become a crucial support for Dogecoin. He stated on social platform X, “$0.209 is the key support for Dogecoin $DOGE, tested five times already.” Dogecoin has held this level for almost 50 days.
Another market watcher, Sjuul from AltCryptoGems, remarked on the ongoing compression in Dogecoin’s price. Sjuul noted that $DOGE has been holding this support level for 50 days, compressing within this consolidation, and is expecting a strong move. Traders are now waiting to see whether the DOGE break will be to the upside or the downside.
The long defense of this price floor has increased market focus on the token. The consolidation phase may precede a volatile move.
Prospects of the First Dogecoin ETF
Alongside technical developments, Dogecoin may also see progress in financial products. Bloomberg analyst Eric Balchunas suggested that REX Shares could launch the first Dogecoin ETF in the United States next week. He said, “Looks like Rex is going to launch a Doge ETF via the 40 Act a la $SSK next week.”
REX Shares recently filed a prospectus with the United States Securities and Exchange Commission. In the document, the issuer warned that Dogecoin is a relatively new asset with unique risks. The filing noted that the market for Dogecoin is prone to rapid price swings and uncertainty.
The fund is following the same regulatory pathway used by REX to bring a Solana staking ETF to the market. This route, known as the 40 Act, does not require the same filings as traditional crypto ETFs. Industry participants describe it as an alternative approach that allows faster product launches.
Competitive ETF Filings and Regulatory Pathways
While REX is preparing its launch, other issuers are also seeking approval. 21Shares submitted a proposal in April for a Dogecoin ETF through the standard process. Similar applications have been made by Bitwise and Grayscale. These filings remain under review by the SEC.
The REX strategy has attracted attention because it avoids the delays associated with the traditional ETF process. Nate Geraci, president of ETF Store, described this approach as a “regulatory end-around.” This has allowed REX to move ahead of rivals by taking a different legal route.
REX has also filed for another fund under the 40 Act that would track Official Trump (TRUMP), a digital asset. The fund would invest in an offshore company that holds the token. This shows the issuer’s broader interest in offering crypto-related investment products.
Market Performance and Broader Interest in Dogecoin
Dogecoin has gained over the past year, rising 116.67% according to CoinMarketCap data. However, it remains 54% below its December 2024 peak of $0.4672. At the time of writing, the token trades near $0.2129.
Despite its price swings, Dogecoin continues to attract attention from the media and investors. Its association with high-profile figures has kept it in the public eye. Elon Musk, often linked with the token, once called it “a hustle” during an appearance on Saturday Night Live in 2021. Reports also suggest that attorney Alex Spiro is chairing a company seeking to raise $200 million to invest in Dogecoin.
The sustained price consolidation near $0.209 and the potential for an ETF launch have put Dogecoin back in the spotlight. Traders are closely watching for a breakout as market conditions develop.
| 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. |
Source: https://coincu.com/analysis/dogecoin-consolidates-0-209-for-50-days/