The launch of spot exchange-traded funds (ETFs) tracking Dogecoin in the United States was received with muted enthusiasm. Inflows into the Grayscale and Bitwise ETFs were limited in the first trading week. despite the hype surrounding it the very first Dogecoin ETFs. But even as ETF inflows sputter, some technical analysts argue that DOGE could still see a strong price drop rally, possibly all the way to $1, if key support levels hold.
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Find out how DOGE ETFs are off to a slow start
When grayscale rolled out his Spot DOGE fund (GDOG) on November 24, the inflow volume on the first day was about $1.8 million, well below estimates some market participants had predicted. Eric Balchunas, senior ETF analyst at Bloomberg, for example, predicted that the ETF will witness a volume of $12 million on its first day of trading.
According to data from SoSoValueOver the course of the first week of trading, net inflows into the Grayscale and Bitwise DOGE ETFs amounted to just over $2.16 million. This shows that institutional and retail investors are somewhat cautious when it comes to investing in the meme cryptocurrency.
This contrasts with the strong opening inflows seen in other altcoin ETFs, such as those for Solana (SOL) and XRP. that were launched in recent weeks. Moreover, the lackluster uptake has cast doubt on whether the ETFs will spark the kind of renewed interest in DOGE that some lenders were hoping for.
Technical outlook suggests bullish potential for $1
While demand for ETFs is currently tepid, several technical outlooks point to a potentially more optimistic outcome for Dogecoin. A technical prospects of Crypto analyst Ali Martinez identifies the key support at around $0.08, with resistance around $0.20. This support level harkens back to a time when DOGE fell below $0.10 before staging a multi-month rally to $0.50 after the US elections.
Dogecoin main price levels. Source: @ali_charts On X
Even more bullish: a period of several weeks technical fault caused by crypto analyst That wave could push prices well above current levels, with interim targets between $0.33 and $0.50, and longer term to $1.
Likewise, crypto analyst Trader Tardigrade believes Dogecoin has fallen back to the same long-term support zone that previously led to big rallies, calling it the launching pad for the next big move. Its weekly chart shows how Dogecoin’s price action has repeatedly risen from this rising trendline, with gains of over 80%, 210%, and even over 440% since October 2023.
Dogecoin technical analysis. Source: @TATrader_Alan On X
The analyst says the pattern is once again intact, and if support at $0.15 holds, Dogecoin could follow the same structure into a larger expansion phase. Based on his projection, this continuation would give Dogecoin enough momentum to make a gradual 610% increase to $1 by 2026.
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At the time of writing, Dogecoin is trading at $0.15 and is poised to rebound or break below support.
Featured image from Unsplash, chart from TradingView