Summary:
Dogecoin (DOGE) entered a correction phase despite the successful debut of the DOJE ETF, the first Dogecoin exchange-traded fund in the U.S. The DOJE ETF saw a strong trading volume of over $17 million on its first day, one of the highest in recent years. However, Dogecoin’s price fell by 11% from its monthly high, likely due to investors selling the news and broader market sentiment shifts. Technical indicators suggest a potential rebound ahead of the Act 33 DOGE ETF approval, with Dogecoin forming a bullish pennant pattern.
What This Means for You:
- Monitor Dogecoin’s technical patterns, particularly the bullish pennant, for potential rebound opportunities.
- Be cautious of short-term volatility as the market digests ETF-related news and broader crypto market trends.
- Watch for upcoming Act 33 ETFs from major firms like Bitwise and Grayscale, which may offer lower expense ratios compared to DOJE.
- Consider the long-term implications of increased institutional adoption of Dogecoin via ETFs.
Here’s why Dogecoin price is in a correction despite the strong DOJE ETF debut:
Dogecoin price remained in a tight range on Thursday and Friday despite the warm reception of the first DOGE ETF in the United States.
Summary
- Dogecoin price has moved into a correction in the past few days.
- The newly launched DOJE ETF had a strong performance.
- Technicals suggest a rebound is possible ahead of the Act 33 DOGE approval.
Dogecoin (DOGE) moved into a correction after falling by 11% from its highest point this month. Its 24-hour volume was $3.4 billion, while its market cap was $40.9 billion.
Dogecoin price falls despite ETF success
Bloomberg’s Eric Balchunas noted that the Rex-Osprey Dogecoin ETF (DOJE) had a strong performance on the first day. Its trading volume was over $17 million, making it a top-five single-day launch in terms of volume in the last five years.
The strong showing was notable for three main reasons. First, DOJE was launched by REX-Osprey, which is a relatively small company in the asset management industry.
Second, DOJE is a highly expensive exchange-traded fund with an expense ratio of 1.50%. In contrast, the iShares Bitcoin Trust has a ratio of 0.25%, while the average passive and active ETFs have ratios of below 0.50%.
Finally, the strong performance suggests that other ETFs from companies such as Bitwise, Grayscale, and 21Shares will gain traction once approved, possibly in October. These funds will likely have lower expense ratios than DOJE. They will also use Act 33 rules, similar to the current Bitcoin (BTC) and Ethereum (ETH) fund.
Dogecoin price has pulled back as investors sell the ETF launch news and as sentiment in the crypto market wanes. Bitcoin and most altcoins have pulled back, with the total market cap moving to $4.05 trillion.
DOGE price technical analysis
The daily timeframe chart shows that the DOGE price has pulled back in the past few days. This retreat happened after it rose to a high of $0.3075, which coincided with the ascending trendline that connects the swing highs since May 11. It is common for an asset to pull back after hitting a crucial resistance level.
On the positive side, Dogecoin price is forming a bullish pennant pattern, pointing to an eventual rebound. More gains will be confirmed if it jumps above the upper boundary of the pennant pattern at $0.3075. This rebound will happen ahead of the DOGE ETF approval.
Extra Information:
For more insights, explore the following resources: Dogecoin Price Tracker, DOJE ETF Performance Report, and Bitcoin Market Trends.
People Also Ask About:
- Why did Dogecoin price fall despite the ETF launch? Investors often sell the news, leading to short-term corrections.
- What is a bullish pennant pattern? A continuation pattern signaling a potential upward breakout.
- What are Act 33 rules for ETFs? Regulatory guidelines allowing more flexible ETF structures.
- How does DOJE compare to other crypto ETFs? DOJE has a higher expense ratio at 1.50%.
- What is the future outlook for Dogecoin? Increased institutional adoption via ETFs could drive long-term growth.
Expert Opinion:
“The strong debut of the DOJE ETF highlights growing institutional interest in Dogecoin, but short-term volatility remains a concern. Investors should focus on technical patterns and upcoming regulatory developments for clarity.”
Key Terms:
- Dogecoin ETF
- DOJE ETF performance
- Bullish pennant pattern
- Act 33 ETF rules
- Dogecoin price correction
- Cryptocurrency market trends
- Rex-Osprey ETF debut
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