Dogecoin Rebounds as Investors Eye Potential ETF Approval This Month

Dogecoin price has surged 16% after bouncing off a crucial support level in September, signaling renewed investor confidence.

The SEC's expected approval of Grayscale and Bitwise DOGE ETFs could further boost Dogecoin's momentum in the coming weeks.

While DOGE's price has rebounded, analysts suggest it will take significant time before it reaches the $1 resistance level.

Dogecoin has recently experienced a significant bounce after hitting a crucial support level in late September. Investors seized the opportunity to buy the dip, pushing the cryptocurrency’s price to $0.2630, a 16% increase from its September low. This upward movement has reignited optimism among DOGE enthusiasts, especially as market analysts speculate on the potential approval of two spot exchange-traded funds (ETFs) by the U.S. Securities and Exchange Commission (SEC).

The SEC is expected to approve the Grayscale and Bitwise DOGE ETFs within the coming weeks, providing a potential catalyst for further price growth. Bloomberg analyst Eric Balchunas has highlighted the likelihood of the agency approving most of the ETF applications, especially considering the current regulatory environment and the existence of a regulated futures product for Dogecoin. This approval could enhance Dogecoin's visibility and attract more institutional investors.

Rising Confidence Fueled by Market Trends

Dogecoin's recent price surge coincides with the broader crypto market's momentum, particularly during the ongoing "Uptober" rally. The cryptocurrency’s price has now surpassed its 50-day and 100-day exponential moving averages, which is a bullish sign indicating that investors are gaining more control. The move above these levels suggests a positive short-term outlook for Dogecoin as it looks to target the year-to-date high of $0.3088.

Source:TradingView

Despite the positive momentum, reaching the $1 mark remains a distant goal for Dogecoin in the near term. A rise to $1 would require a price increase of over 250%, which analysts suggest is unlikely in the immediate future. The cryptocurrency is forming a rising wedge pattern, which often signals a breakdown when the trendlines converge. This suggests that while Dogecoin’s price may continue to rise in the short term, the path to $1 is fraught with challenges.

As investors eagerly await the SEC's decision on the Grayscale and Bitwise DOGE ETFs, Dogecoin’s price movement will likely remain tied to these developments. The broader cryptocurrency market rally and the approval of these ETFs could help sustain DOGE’s bullish momentum in the coming weeks, although the $1 resistance may prove to be a significant hurdle for the time being.

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