Dogecoin price remained in a tight range this week as Polymarket’s odds for a potential DOGE ETF declined.
Dogecoin (DOGE), the largest meme coin, rose about 6% on Dec. 2, bringing its seven-day gains to 7.5%. However, the dynamic could reverse as Polymarché survey shows that the odds of the Securities and Exchange Commission approving a spot DOGE ETF this year have fallen to 26%, down from a high of 50% last week.
In contrast, Polymarket users expect the SEC to approve a Solana (GROUND) ETF later this year, with the chances are at 76%. The odds of a Ripple ETF (XRP) are 70%.
The lowest chances for a DOGE ETF likely come from the lack of demand from a financial services company. In contrast, WisdomTree, a $100 billion asset manager, filed for a Ripple ETF. Additionally, the SEC has until January 31 to approve or reject Solana ETFs offered by companies like Grayscale, 21Shares and VanEck.
Nonetheless, it is possible that one or more companies will file for a Dogecoin ETF if the SEC, under the leadership of Paul Atkins, shows flexibility on crypto funds. Such an ETF could be approved more easily, as Dogecoin is a proof-of-work cryptocurrency similar to Bitcoin.
DOGE also holds a significant position in the crypto industry, with a market capitalization of $50 billion, approximately $16 billion less than that of MicroStrategy. MicroStrategy has several covered and leveraged call ETFs.
Crypto ETFs are doing well because they help institutional investors gain access to the sector. Bitcoin ETF now hold over $105 billion in assets, while Ethereum funds hold over $12 billion.
Dogecoin price analysis
The daily chart shows that DOGE bottomed at $0.2635 in December and has since recovered to $0.3382. It has moved closer to the 50-day moving average, while the Relative Strength Index attempts to break above the descending trendline.
The percentage price oscillator has formed a bullish crossover. Additionally, the accumulation and distribution indicator remains high, suggesting that investors are gradually accumulating DOGE.
As a result, the coin is likely to rebound, with bulls targeting resistance at $0.4836, the highest level reached in 2024. Conversely, a drop below the support level of $0.2650 would signal a further downside potential.