The last 24 hours have seen a significant 6% decline in Dogecoin’s price action, marking a swift reversal from the bullish momentum two days ago. This rapid decline is concerning, especially as it aligns with events that were expected to generate strong bullish momentum for the meme coin.
The recent news of DOGE ETF filings generated significant anticipation within the crypto community and on social media, with many expecting the filings to drive increased institutional interest and spark a rally. This leaves room for questions as to how the meme coin’s price is now declining.
Removal Of Shiba Inu Imagery Dampens Sentiment
Dogecoin’s price decline comes at a time when optimism surrounding DOGE ETF filings should ideally have strengthened the token’s performance. One of the significant contributors to Dogecoin’s price slump was the removal of Shiba Inu imagery from the D.O.G.E website. The D.O.G.E is the newly created Department Of Government Efficiency, which was signed into law by US President Donald Trump.
Despite having no direct utility or connection to DOGE, the department’s acronym shares an uncanny resemblance with the meme coin’s ticker. Adding to the interest, the department is expected to be led by Elon Musk, who is popularly known as the Dogefather due to his vocal support for Dogecoin.
When the D.O.G.E. website launched just two days ago, it prominently featured the iconic Shiba Inu dog image that has become synonymous with Dogecoin. This surprising inclusion caught the attention of the crypto community, especially Dogecoin enthusiasts. Many interpreted the featured image as a deliberate nod to the meme coin and a strong connection between the two, with its price and trading volumes experiencing a brief surge.
However, it would seem that the euphoria has died down as quickly as it began after the image had been removed. This has also seen a corresponding decline in the price of DOGE, with trading volume also witnessing a drastic 75% drop in 24 hours.
Dogecoin ETFs To Send Price Flying High
Recent filings for Exchange-Traded Funds (ETFs) tied to DOGE by asset managers REXShares and Osprey Funds generated a significant load of interest in the crypto community. Shortly after, crypto index fund manager Bitwise also filed for a Dogecoin ETF in the state of Delaware. The strategic timing of these filings coincides with the inauguration of a pro-crypto administration in the US, which could provide favorable regulatory environments for such financial products tied to cryptocurrencies.
Some crypto experts have predicted that an eventual launch of a Dogecoin ETF will send the price of Dogecoin to new highs. For example, crypto analyst Ali Martinez predicted that a Dogecoin ETF will send the meme coin to $15. This price target is grounded on technical analysis of an uptrend channel that Dogecoin has been trading in since 2016.
At the time of writing, DOGE is trading at $0.35 in a falling wedge pattern. Technical analysis of the falling wedge suggests that the meme coin might shoot up to $0.39 again within the next 24 hours.
Featured image from iStock, chart from Tradingview.com
