The last 24 hours have seen a significant 6% decline in Dogecoin price actionmarking a rapid reversal of the bullish momentum of two days ago. This rapid drop is concerning, especially as it aligns with events that were expected to generate strong bullish momentum for the meme coin.
the recent DOGE ETF filings news generated significant anticipation within the crypto community and on social media, with many hoping the filings would generate greater institutional interest and spark a rally. This leaves room for questions about how the price of the meme coin is falling.
Removing Shiba Inu Images Dampens Sentiment
The Dogecoin price drop comes at a time when there should ideally be optimism surrounding DOGE ETF filings. strengthened token performance. One of the major contributors to the Dogecoin price drop was the removal of Shiba Inu images from the DOGE website. The DOGE is the newly created Department of Government Efficiency, which was signed into law by United States President Donald Trump.
Despite having no direct utility or connection to DOGE, the department’s acronym shares an uncanny resemblance to the meme currency symbol. To add to the interest, the department is expected to be headed by Elon Musk, popularly known as the Dogefather due to his vocal support for Dogecoin.
When the DOGE website launched just two days ago, It featured the iconic image of the Shiba Inu dog 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 seeing a brief spike.
However, it seems that the euphoria has died down as quickly as it began following the image’s removal. This has also caused a corresponding drop in the price of DOGE, with trading volume also seeing a drastic 75% drop in 24 hours.
Dogecoin ETFs Will Make Price Soar
Recent filings of DOGE-linked exchange-traded funds (ETFs) by asset managers REXShares and Osprey Funds generated a large amount 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 these types of financial products linked to cryptocurrencies.
Some cryptocurrencies Experts have predicted that an eventual launch of a Dogecoin ETF will lift 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 target price is based on technical analysis of an uptrend channel which 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 back up to $0.39 in the next 24 hours.
Featured image from iStock, chart from Tradingview.com
