Dogecoin (Doge) is expected to potentially drop to $0.29 due to institutional activity and bullish technical indicators. On May 29, 21Shares applied for a Dogecoin ETF, aiming to provide investors with a new investment method. If approved, it could improve liquidity and attract more large investors. Technical analysis shows that Doge has formed an ascending triangle, nearing resistance at $0.245, and if it breaks through, could reach $0.29. Additionally, an inverse head and shoulders pattern suggests a potential upward target of $0.37, with market confidence gradually strengthening. The current price of Dogecoin is approximately $0.21.
Dogecoin (Doge) price may drop to $0.29 due to new institutional activity and bullish technical indicators. The recent Dogecoin ETF news has drawn renewed attention from traders and analysts.
21Shares ETF submission draws attention to Dogecoin prices.
On May 29, 21 Shares formally applied for a Dogecoin exchange-traded fund (ETF). This filing is the first major effort to provide a regulated way to invest in the U.S. This decision was presented after the approval of various ETFs, including Bitcoin, and increasing interest in Ethereum products.
It is worth noting that it aims to provide Dogecoin directly to investors through exchange-traded funds. Therefore, more investors who may be restricted by regulations or traditional methods may be interested in the issuance.
If approved, the ETF could improve liquidity for threshold trading and allow large investments to flow in without requiring users to manage wallets.
Technical formations suggest a Doge price breakout at $0.29.
Meanwhile, as investor interest increases, technical analysts are closely monitoring the price candlestick chart setup of Dogecoin.
According to data provided by Trader Tardigrade, the daily Doge candlestick chart has formed an ascending triangle. This pattern shows four points where the price touches support and resistance before moving upward.
According to the candlestick chart, Doge price is nearing the top of the triangle, encountering significant resistance around $0.245.
A close above that point may lead to an increase in the breakout price target, aiming around $0.285 to $0.29. The anticipated move follows the vertical height of the triangle plus the breakout level.
Analysts anticipate a potential meme coin breakout by early June.
More importantly, Trader Tardigrade showed a possible path that could lead to a breakout. After the current consolidation phase, there may be a final small movement before a breakout occurs.
According to predictions, this could happen in the first week of June, as long as market momentum and volume remain favorable.
In another analysis, Trader Tardigrade identified an inverse head and shoulders (IH&S) pattern on the Doge price daily candlestick chart. This classic bullish reversal structure indicates a trend change, with the neckline positioned around $0.255.
The layer has two rounded shoulders and a prominent head, indicating a strong formation of lower bottoms before an expected upward move.
Therefore, the anticipated target for the breakout is $0.37, calculated from the height from the head to the neckline. This level aligns with the previous support zone, adding weight to the projection.
A confirmed breakout above the neckline could validate this setup and trigger a continuation of the upward trend. It may accelerate the momentum of the meme coin into the next quarter.
Doge price is consolidating in a bullish flag pattern.
Another analyst, Flash Trading, noted that the meme coin has shown a classic breakout of an extended falling wedge. This is a sign that typically leads to the end of a downward trend.
After the breakout, Doge price has been consolidating in a narrow Bull Flag pattern. Analysts note that as investors start to feel more optimistic, this phase may bring broader action for Altcoins.
Moreover, a close above $0.245 may lead to a move towards $0.423. According to Flash, a stable market and Bitcoin prices rising to $120,000 could benefit Doge and other Altcoins. This setup resembles the typical market formation in the early stages of a bull market.
At the time of writing, the trading price of Dogecoin is $0.21, having increased by 0.21% in the past 24 hours. The price has recovered from a recent low near $0.217 and is currently consolidating in a tight range above $0.2235, indicating bullish momentum after early losses.
