TL;DR
- Dogecoin has retraced to the key 0.618 Fibonacci level, with analysts predicting a potential rebound and even a surge to a new all-time high of $2.30.
- The SEC’s acknowledgment of Grayscale’s DOGE ETF application boosts optimism, with a 76% chance of approval by year-end, potentially driving long-term price growth.
Bullish Reversal in the Cards?
The largest meme coin in terms of market capitalization – Dogecoin (DOGE) – started the new year on the right foot, with its price soaring above $0.40 approximately a month ago. Since then, though, bears have taken control, and the asset has been on a downfall. Currently, it trades at around $0.27 (per CoinGecko’s data), representing a 30% decline on a 30-day scale.
According to some industry participants, the asset might soon return to the green track. The X user Ali Martinez claimed that DOGE has pulled back to the 0.618 Fibonacci level, also known as the Golden Ratio.
This zone reflects natural patterns found in financial markets. Some market observers consider the 0.618 Fibonacci level a key point at which the prices of certain cryptocurrencies (including Dogecoin) bounce during downtrends.
Another analyst who recently chipped in is JAVON MARKS. They observed DOGE’s performance in the last bull cycles to forecast a potential explosion to a new all-time high of almost $2.30 during the ongoing one.
“Dogecoin’s numbers and historical performances suggest that $2.28758+ can be levels that prices are set to go and meet. Currently, that’d be an over 701% increase,” the trader stated.
The Possible Effect of a DOGE ETF
One important factor that may positively impact the price of the meme coin in the long term could be the potential approval of a spot Dogecoin exchange-traded fund (ETF) in the United States.
Earlier this week, the US SEC acknowledged Grayscale’s application to introduce such a product. This means that the regulator will thoroughly review the investment vehicle and officially approve or deny its launch in the next 240 days.
A possible go-ahead would give American investors additional options to gain exposure to the token without purchasing it from exchanges or worrying about self-custody. Eric Balchunas – Senior ETF analyst at Bloomberg – was among those seeing the SEC’s decision as “a good sign:”
Doge ETF filing has been acknowledged by SEC, is part of normal process but that’s good sign in the case as these alt coins (which in past have been told to withdrawal right after filing), bumps up slightly our (already pretty good) odds of approval. https://t.co/6RLrpRymlC
— Eric Balchunas (@EricBalchunas) February 13, 2025
Meanwhile, the odds of a DOGE ETF approval before the end of 2025 have risen to 76% (according to Polymarket).
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