The last 24 hours saw a significant 6% decline in Dogecoin price actionmarking a rapid reversal of the bullish momentum two days ago. This rapid decline is concerning, especially since 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 deposits to generate increased institutional interest and spark a rally. This leaves room for questions about How the meme coin price is now falling.
Elimination of Shiba INU imagery dampens sentiment
Dogecoin’s price decline comes at a time when optimism surrounding Doge ETF deposits should ideally have strengthened the performance of the token. One of the significant contributors to Dogecoin’s price decline was the removal of Shiba Inu imagery from the Doge website. Doge is the new Department of Government Efficiency, which was signed into law by US President Donald Trump.
Although it has no direct use or connection to DOGE, the department’s acronym shares an uncanny resemblance with Meme Coin’s ticker. Adding to the interest, the ministry is expected to be led by Elon Musk, who is popularly known as the Dogefather due to his vocal support for Dogecoin.
When the Doge 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 undergoing a brief surge.
However, it seems that the euphoria died down as quickly as it began after the image was deleted. This also saw a corresponding drop in the price of DOGE, with trading volume also witnessing a drastic drop of 75% in 24 hours.
DOGECOIN ETFS to Send Flying Price High
Recent filings of DOGE-related exchange-traded funds (ETFs) by asset managers Rexshares and Osprey funds have generated a significant charge of interest for the crypto community. Shortly after, Crypto Index Fund Manager 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 United States, which could provide favorable regulatory environments for such cryptocurrency-related financial products.
A little crypto Experts predicted That a possible 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 would send the meme coin to $15. This price target is grounded Technical analysis of an upward channel This Dogecoin has been trading 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 could shoot up to $0.39 again in the next 24 hours.
Featured image from Istock, chart from TradingView.com