DOGE spot ETF excitement fuels breakout prospects as profit supply surges
Positive spot ETF approval expectations are causing Dogecoin price to consolidate around the 50-day EMA.
As derivatives open interest grows 2.17% to $1.85 billion despite shorts liquidation, Dogecoin on-chain indicators are optimistic.
DOGE may not reverse toward its April low at $0.13 due to the 50-day EMA at $0.179.
Dogecoin (DOGE) is trading flat at $0.18 on Friday as the crypto market rebounds amid risk sentiment. The biggest meme currency by market capitalization might continue the previous month's rebound from the April 7 low at $0.13 on the belief that the SEC would permit DOGE spot ETFs.
Dogecoin ETF mania rises
With crypto-friendly Paul Atkins as SEC head, Dogecoin aspirations are high. Leading fund managers including 21Shares and Bitwise have applied to the SEC to create spot DOGE ETFs. This and Nasdaq's 19b-4 form with the agency to list and trade the 21Shares Dogecoin ETF are big steps toward mainstreaming crypto's top joke currency.
Spot ETFs enable investors to get exposure to crypto assets without buying the coins on exchanges or OTC platforms. Stock exchanges sell regulated spot ETFs.
A biweekly market update from Santiment stated that "the partnership between 21Shares and the Dogecoin Foundation (via the House of Doge) to promote the ETF has added credibility to the project, sparking stronger engagement from both longtime DOGE supporters and traditional investors looking for new opportunities."
Can rising open interest revive Dogecoin bullishness?
A 2.17% rise in derivatives' open interest (OI) indicates market expectation as traders initiate fresh positions. The long-to-short ratio is significantly over one, indicating traders favor long holdings.
On the daily chart below, Dogecoin is trading around $0.180, just above the 50-day EMA at $0.179. A daily closure above this level might boost DOGE investors' bets on a rise to the 100-day EMA resistance at $0.204 and 200-day EMA at $0.218.
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