TLDR
- Dogecoin is trading around $0.23 after forming an ascending channel with higher highs and lows
- A key analyst predicts DOGE could go “parabolic” in October with a potential surge toward $1
- The recently launched Rex-Osprey DOGE ETF has crossed $20 million in assets
- Technical support at $0.18-0.19 has proven resilient with key resistance at $0.2485
- Q4 typically brings volatility to crypto markets, and DOGE is positioned as a key coin to watch
Dogecoin has been consolidating near the $0.23 level as traders keep a close eye on what could potentially be a breakout quarter for the original meme coin. With technical indicators showing promising signs and a new ETF gaining traction, market participants are watching for signals that DOGE might be preparing for a significant move in the coming months.
The daily timeframe chart shows that Dogecoin has established an uptrend over recent months. The pattern of higher highs and higher lows has created an ascending channel that traders use to identify potential entry and exit points.
DOGE recently pulled back to the lower boundary of this channel. This support zone coincides with the 100-day Exponential Moving Average (EMA) and aligns with the top range of the Murrey Math Lines tool, creating a strong technical foundation for a potential bounce.
Historical data shows that when DOGE reaches this support level, substantial rebounds often follow. In June, the coin surged over 100% after touching this support, while a similar pattern in September resulted in a 50% increase.
The crypto is currently trading at $0.2268 after experiencing a modest 3.24% daily decline. Trading has remained within a tight range between $0.2265 and $0.2389, suggesting price compression that often occurs before larger price movements.
With daily trading volume exceeding 780 million DOGE, the market shows strong liquidity that could support a breakout if buying pressure increases.
Technical Outlook
The $0.18-0.19 range has proven to be a reliable support zone, with buyers consistently stepping in when prices approach this area. This level will be crucial to monitor in the coming weeks, as maintaining this support is essential for the bullish case.
The immediate resistance sits at approximately $0.2485, but technical analysts suggest that if bulls can build momentum, the real target lies in the $0.315-0.38 range, representing a potential 40% upside from current levels.
One anonymous analyst with over 30,000 followers has identified a cup-and-handle pattern on the ten-day chart. This formation is often considered a bullish continuation pattern that could eventually push DOGE toward $1, which would represent a 338% increase from current prices.
However, there are risks to this bullish outlook. The ascending channel is narrowing, potentially forming a rising wedge pattern. Rising wedges often lead to bearish breakouts, which could occur after DOGE retests the upper boundary once or twice more.
ETF Development Gains Momentum
A potential catalyst for Dogecoin’s price action is the recently launched Rex-Osprey ETF, which has seen consistent inflows since its introduction earlier this month. The fund has now crossed the important $20 million milestone in assets under management.
These steady inflows indicate growing demand for Dogecoin exposure from American investors. Market observers suggest this demand could increase further with the launch of mainstream DOGE ETFs expected in October.
The ETF development parallels what happened with Bitcoin and Ethereum, both of which reached record highs following their respective ETF approvals. This historical precedent has many Dogecoin supporters optimistic about similar outcomes.
Meme tokens have historically outperformed during periods of positive market sentiment and increased risk appetite. Dogecoin’s advantage extends beyond technical indicators to include its massive and engaged community that can quickly amplify price movements through social momentum.
The key level to watch is $0.25. A decisive break above this resistance would likely attract momentum traders and potentially open the door to the $0.30-0.38 range. However, if the support around $0.18-0.19 fails, the bullish outlook would be significantly weakened.
Q4 typically brings increased volatility to cryptocurrency markets, and with its current setup, Dogecoin appears positioned as one of the key digital assets to watch for potential upside as the year draws to a close.
The post Dogecoin (DOGE) Price: Key Support at $0.18-0.19 Holds as New ETF Gains Traction appeared first on Blockonomi.
Source: https://blockonomi.com/dogecoin-doge-price-key-support-at-0-18-0-19-holds-as-new-etf-gains-traction/