The Dogecoin price remains on edge today, September 2, as the broader cryptocurrency market continues to deteriorate. DOGE is in its third consecutive week in the red, having fallen to $0.2075, down 57% from its highest level in November last year.
Dogecoin Price Technical Analysis
The daily timeframe shows that the DOGE price has declined significantly over the past few days. It has dropped from a high of $0.2860 in July to a low of $0.2058.
The coin has plunged below the 50-day moving average, a sign that the selling pressure is intensifying. Dogecoin has also plunged below the ascending trendline that connects the lowest swings since June 20th.
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Therefore, the coin will likely continue falling as sellers target the important support level at $0.1500, which coincides with the strong pivot, reverse level of the Murrey Math Lines indicator. It will then bounce back to the psychological point at $0.200.
A drop below the strong pivot, reverse will likely indicate further downside, potentially reaching the ultimate support point at $0.10.
DOGE ETF Approval is a Major Catalyst
One major catalyst that will change the bearish outlook is the potential approval of a spot Dogecoin ETF by the Securities and Exchange Commission (SEC).
The agency is considering funds by companies like Bitwise and Grayscale and has set the deadline for October. Most importantly, the odds that the agency will approve these funds this year have jumped to 80% on Polymarket.
These odds have increased because there is no major difference between DOGE and Bitcoin, as they are all proof-of-work (PoW) coins that the SEC has never deemed securities. The agency has already approved the spot Bitcoin ETFs, meaning that it has no reason to reject a DOGE ETF.
It is likely that the funds will have inflows, resulting in increased demand for Dogecoin tokens. For example, Ethereum has had over $13 billion in inflows, while Bitcoin has had $54 billion. While Dogecoin may not reach these levels, it will still receive millions in inflows.
Another notable catalyst for the Dogecoin price is that companies are now accumulating DOGE tokens for their treasuries. For example, The House of Doge plans to buy $200 million worth of coins this year.
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