Key takeaways
- Dogecoin price charts suggest significant upside, echoing patterns from past cycles.
- RSI analysis aligns with previous consolidation phases that preceded notable rallies.
- Bitwise’s evolution into a Dogecoin ETF highlights the growing institutional interest in DOGE.
Dogecoin is attracting attention because its current consolidation phase is similar to some of the cryptocurrency’s previous cycles. As analysts have observed, historical DOGE data could indicate what lies ahead for the digital currency. According to the analystthere are similarities in the price movements seen last year and also during the previous four-year cycle.
Notably, in 2024, a similar consolidation phase led to a dramatic 3x price increase. Observers are now focusing on the structural alignment between these past movements and current trends, speculating that Dogecoin could be on the verge of another important rally.
Although everything is pretty much timed, one main signal appears: the Relative Strength Index. In previous cycles, RSI trends served as primary indicators of huge price swings. These indicators offer hope to investors who are closely monitoring the crypto’s trajectory, anticipating a strong upward movement in the coming weeks or months.
RSI suggests bullish setup for Dogecoin
Taking a closer look at the Dogecoin RSI, one can find some interesting dynamics: Historically, the RSI has provided the first signs of larger price movements in the cryptocurrency. Currently, the RSI is exhibiting conditions similar to those seen in early 2024 ahead of the rally. This means that DOGE could consolidate in preparation for a breakout.
Although historical time frames provide some guidance, daily fluctuations make it difficult to determine where the pump should start. However, the similarities in RSI trends give hope that the coin is gaining momentum for a significant price movement like in previous cycle patterns.
Bitwise targets Dogecoin ETF in strategic move
At the same time, Bitwise Asset Management filed the legal entity “BITWISE DOGECOIN ETF” in Delaware. While this is not a complete SEC filing, it is an important first step toward filing a Form S-1, which is required to market a Dogecoin ETF. If approved, the ETF could hit the market as early as April 2025.
Other market drivers may have come into play, including the wave of SEC approvals for Bitcoin and Ethereum ETFs – which has now raised hopes that Dogecoin could be listed alongside these. Even more recently, further reasons for renewed optimism emerged when former SEC Chairman Gary Gensler resigned.
Market observers believe that a Dogecoin ETF would further legitimize DOGE and open new avenues for adoption by individuals and institutions, thereby strengthening its position in the cryptocurrency market.
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