Dogecoin price has moved sideways in the past few weeks as investors wait for the next catalyst. The DOGE token was trading at $0.2218, up by 55% from its lowest level this year. Still, one key catalyst will likely help to supercharge it in the coming weeks.
Spot DOGE ETF Approval Could be a Key Catalyst
The main catalyst that may drive the Dogecoin price higher in the coming weeks is the upcoming approval of altcoin ETFs by the Securities and Exchange Commission (SEC).
The agency has set the final deadlines for most altcoins to be in October this year. This includes top altcoins like Solana, XRP, and Hedera Hashgraph.
The SEC has set a deadline of October 18 for the Bitwise Dogecoin ETF and November for the Grayscale, 21Shares, and Rex Shares.
Most analysts believe that the SEC will approve the spot DOGE ETF in October after concluding a prolonged review. Besides, Dogecoin is a large cryptocurrency worth over $33 billion and is also one of the most liquid, with a daily volume of over $2 billion.
Most importantly, Dogecoin is not all that different from Bitcoin and other proof-of-work tokens. Like BTC, new coins are created using mining, and the SEC has never viewed them as a security.
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A DOGE ETF Approval would be beneficial for the coin, as it would likely attract more inflows from American investors, similar to what we’ve seen with other coins like Bitcoin and Ethereum. The approval itself will be more bullish than the subsequent events.
Dogecoin Price Technical Analysis
The daily timeframe chart shows that the DOGE price has remained in a tight range in the past few weeks. It was trading at $0.2197, which is slightly above the lower line of the ascending channel.
The price is positioned at the top of the trading range indicated by the Murrey Math Lines tool. It is also consolidating at the 50-day Exponential Moving Average (EMA).
Therefore, the DOGE coin may rebound soon as bulls target the ultimate resistance of the Murrey Math Lines at $0.2930, which coincides with the upper side of the ascending channel. A move above that resistance will point to more gains to the extreme overshoot level of $0.3420.
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