- Dogecoin’s price correction follows a strong performance from the DOJE ETF, launched by REX-Osprey with $17 million in first-day volume.
- Despite Dogecoin’s recent dip, technical patterns suggest a possible rebound if it surpasses resistance at $0.3075.
- The overall crypto market sentiment has shifted, with major assets like Bitcoin and Ethereum also experiencing price declines.
Dogecoin (DOGE) experienced a slight price correction on Thursday and Friday, following a brief rally earlier this month. Despite this, the digital asset has seen a boost from the recent launch of the Rex-Osprey Dogecoin ETF (DOJE), which garnered significant attention in the market.
The Rex-Osprey Dogecoin ETF was very impressive, as more than 17 million worth of shares were traded on the first day. The share has one of the best single-day ETF launches over the past five years, and this is an indicator that Dogecoin-related financial products are of interest to investors. The particular reason that this success is significant is that REX-Osprey is comparatively small in the asset management industry, and therefore the launch should be distinguished from the analogous services.
Further, the ETF is associated with a relatively high cost ratio of 1.50, which is a sharp contrast to other funds in the cryptocurrency category, such as the iShares Bitcoin Trust, which has a lower cost structure. The promising performance of the DOJE ETF despite the increased charges is promising, as other market leaders such as Bitwise, Grayscale, and 21Shares prepare their own in the second half of the year. These futuristic ETFs will have lower charges and could attract even more attention of investors.
The Price Adjustment of Dogecoin in the Market Sentiment.
Even after the good showing of the DOJE ETF, the price of Dogecoin has dropped back. This fall followed the recent peak of the asset at $0.3075 earlier this month and the ascending trendline resistance, which links to the major swing highs since May 11. Cryptocurrencies tend to fall back once they hit key resistance levels, and this recent correction is not an exception.
Furthermore, there has been a change in the general mood of the market. Bitcoin and most altcoins have fallen, and a broad downward trend in the cryptocurrency market has been caused. Consequently, Dogecoin has dropped approximately 11 percent since it started reaching its peak in the first half of this month. Cryptocurrency market cap has decreased to approximately 4.05 trillion, which is the final indicator of the general market decline.
Possible Rebound as Bullish Pattern Develops.
Nevertheless, indications are present that Dogecoin can revive in the near future. Technical factors give the indication of the development of a bullish pennant formation on the DOGE chart. The breach of the resistance area above the $0.3075 mark marks the possible breakout; this could be a sign that there is a turnaround in the pattern since traders expect more to happen before the expected Act 33 DOGE bill is passed.
With the current price correction, the future of Dogecoin is still promising, considering the increased attention to the Dogecoin-related financial products, such as the DOJE ETF and the new regulatory authorization.
