DOGE ETF Approval Chances Decrease, This is the Reason!

Bittime - Dogecoin (DOGE), the world's largest meme coin, experienced a price surge of about 6% on December 2, bringing its total seven-day gain to 7.5%. However, despite this positive momentum, the chances of approval for a spot DOGE ETF by the Securities and Exchange Commission (SEC) show a significant decline.

According to a Polymarket poll, the chances of DOGE ETF approval are now just 26%, down from the 50% recorded last week. This decline raises the question of what has caused this change in sentiment in the market.

Meanwhile, Polymarket users predict that the SEC will be more likely to approve ETFs for other digital assets such as Solana and Ripple, with the odds reaching 76% and 70% respectively.

This suggests that despite Dogecoin's large user base and significant market capitalization, uncertainty surrounding a DOGE ETF remains.

One of the main reasons for this drop in odds is the absence of applications from financial services companies to apply for a DOGE ETF, which has investors worried about the future of this digital asset.

Also read: Dogecoin Price and Double-Digit Target: Could it Happen in 2025?

Uncertainty in the ETF Market

One of the factors affecting the chances of a DOGE ETF is the lack of official filings from asset management companies. While WisdomTree, a $100 billion asset manager, has filed for an ETF for Ripple, Dogecoin has not received similar attention.

This suggests that large companies may still be hesitant to invest in Dogecoin, despite its high popularity among users.

In addition, the SEC has until January 31 to approve or reject the Solana ETF proposed by companies such as Grayscale, 21Shares, and VanEck.

If the SEC shows flexibility in the approval of crypto funds, it is possible that companies will start proposing ETFs for Dogecoin. However, at the moment, this uncertainty is making investors more cautious.

Dogecoin (DOGE) Price Analysis

In terms of price analysis, Dogecoin is showing some signs of recovery. The daily chart shows that DOGE bottomed out at $0.2635 in December, but has since recovered to $0.3382.

DOGE is currently moving towards its 50-day moving average, and the Relative Strength Index (RSI) is attempting to break the downtrend line. This suggests that there is potential for a further rebound.

The Percentage Price Oscillator indicator is also showing a bullish crossover, signaling that the positive momentum might continue. In addition, the accumulation and distribution indicators remain high, indicating that investors are gradually accumulating DOGE.

If this trend continues, bulls may target the resistance level at $0.4836, which is the highest level reached in 2024.

Also read: So Top Memecoin, How Much Total Dogecoin in Circulation?

Dogecoin's Potential Future

Despite the declining chances of a DOGE ETF approval, Dogecoin still holds an important position in the crypto industry with a market capitalization of around $50 billion. This shows that DOGE still has traction among investors.

If there are future DOGE ETF filings, and the SEC shows a more positive attitude towards digital assets, DOGE could regain the lost momentum.

With all these factors, Dogecoin (DOGE) remains an interesting digital asset to watch. While there are challenges ahead, a potential price rebound and support from a large user community could provide opportunities for savvy investors.

2025 could be an interesting year for Dogecoin, especially if there are positive developments regarding the DOGE ETF.

FAQ

What is the DOGE ETF?

A DOGE ETF is an Exchange-Traded Fund designed to track the performance of Dogecoin (DOGE), allowing investors to gain exposure to this digital asset without having to buy DOGE directly. This ETF could provide an easier and more diversified way to invest in Dogecoin.

Why are the chances of DOGE ETF approval decreasing?

The chances of DOGE ETF approval are decreasing due to the absence of formal applications from financial services companies to apply for such ETFs. In addition, more positive market sentiment towards ETFs for other digital assets such as Solana and Ripple also contributed to this decline.

What affects the Dogecoin (DOGE) price?

The price of Dogecoin (DOGE) is influenced by a variety of factors, including market sentiment, regulatory news, and trading activity. Technical indicators such as moving averages, Relative Strength Index (RSI), and accumulation distributions can also provide insight into the potential future price movements of DOGE.

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References

polymarket.com, doge-etf-approved, accessed on January 3, 2025.

crypto.news, Dogecoin price stalls as DOGE ETF approval odds fall, accessed on January 3, 2025.

Author: AWW