The U.S. Securities and Exchange Commission (SEC) recently decided to postpone the approval of the spot Dogecoin ETF application proposed by 21Shares, adding to the lengthy list of altcoin ETFs awaiting approval.
In light of this information, Dogecoin's price dropped more than 2% in the past 24 hours, bringing the total decline for the month to over 15%.
SEC delays approval for the 21Shares Dogecoin ETF
According to newly published records from the U.S. Securities and Exchange Commission (SEC), the agency has decided to extend the deadline by an additional 45 days to make a final ruling on the proposed 21Shares spot Dogecoin ETF.
The SEC stated that it needs more time to thoroughly consider whether this ETF fund meets the listing and trading criteria under Nasdaq Rule 5711(d). In the document, the SEC clarified:
"Nasdaq submitted an application for the listing and trading of the 21Shares Dogecoin ETF on April 28. However, it was not officially published in the Federal Register until May 19, thus the next deadline for the SEC to make a decision is set for August 17.
Other Dogecoin ETFs have also been delayed
In addition to 21Shares, two other notable names, Grayscale and Bitwise, have also submitted applications for Dogecoin ETF approval since January this year. However, the U.S. Securities and Exchange Commission (SEC) continues to delay decisions on both of these ETF proposals. According to the schedule, the deadline for the SEC to make a final decision on Grayscale is in October, while for Bitwise, it is in November.
However, the approval outlook is gradually brightening. Bloomberg's ETF analysts assert that the likelihood of the Dogecoin ETF approval has surged to 90%. Eric Balchunas – a senior ETF expert at Bloomberg – mentioned that positive signals are beginning to emerge, especially as the SEC actively engages with Bitwise to refine and update the registration filing.
The bullish momentum of Dogecoin is weakening
In the past 24 hours, the price of Dogecoin (DOGE) has dropped over 2%, continuing to hover around the $0.165 mark – a price that has been maintained almost all week. As of the time of writing, DOGE is trading at $0.163, fluctuating within a narrow range from $0.1623 to $0.1678 during the day.
Despite the price being flat, trading volume increased by 13% during the same period, indicating a certain level of interest from investors still remains.
On the daily chart, technical signals lean towards the bears as DOGE is below all three important moving averages: SMA 50, SMA 100, and SMA 200. The relative strength index (RSI) has also dropped to 39 – a borderline area that indicates DOGE may continue to lose value.
Moreover, negative signals persist as the 20-day exponential moving average (EMA) continues to stay below the 50-day EMA, reinforcing the bearish trend in the short term.
The Dogecoin derivatives market shows a pessimistic sentiment
Data from CoinGlass shows that the bears are gaining the upper hand in the derivatives market. The open interest (OI) of Dogecoin (DOGE) futures contracts has decreased by 3% in the past 24 hours, down to 1.77 billion USD. On major exchanges like Binance, OKX, and Bybit, the open interest dropped by an average of more than 2%, reflecting a clear bearish sentiment from derivatives investors.
At the same time, data from Glassnode reveals a grim picture: DOGE traders have recorded losses of up to 132 million USD – nearly 25 times the profit of just 5.4 million USD. This is the worst loss/profit ratio among the top 10 cryptocurrencies.
Meanwhile, Bitcoin maintains a positive performance with a profit of 1.3 billion USD and only a loss of 33 million USD. Ethereum is relatively stable, with losses amounting to approximately 52% of the profit obtained.
For Dogecoin alone, the realized loss rate is 40 times the profit – a serious discrepancy, even surpassing many meme tokens known for their strong volatility.
Currently, the Dogecoin network is falling into the "Hope/Fear" zone according to the sentiment analysis model from Glassnode. The SOPR index stands at 0.96 – indicating that most investors are forced to sell at a price lower than their purchase price, rather than having the opportunity to take profits.