The U.S. Securities and Exchange Commission has postponed the approval of Dogecoin's spot ETF, and the price has dropped to $0.22. Will Dogecoin face a larger correction?
Dogecoin is back in the headlines, but not for the reasons traders had hoped. The U.S. Securities and Exchange Commission delayed the approval of a batch of spot cryptocurrency ETFs, including Grayscale's proposed Dogecoin fund. While this move prevents Dogecoin from immediately attracting institutional investors, it also highlights that this asset, which has transformed from a meme coin to a blue-chip stock, is now being considered alongside Bitcoin and Ethereum for mainstream investment products. The daily chart shows Dogecoin struggling around $0.22, wavering between waning momentum and long-term legitimacy prospects.
Dogecoin Price Prediction: Why is Dogecoin in the Spotlight?
The U.S. Securities and Exchange Commission has once again postponed the approval of multiple cryptocurrency-related ETFs, including Grayscale's proposed Dogecoin spot ETF. Like the applications for Bitcoin, Ethereum, Ripple, and Litecoin, Dogecoin is now caught in the same regulatory predicament. The new deadline is set for October, bringing uncertainty to the market. For Dogecoin, this delay is a double-edged sword: it indicates growing interest from institutional investors but also extends the wait for mainstream application catalysts.
How will Dogecoin's price react?
From the Dogecoin/USD daily chart, the price hovers around $0.219, down nearly 4% today. The average candle chart has seen consecutive red marks after failing to maintain above $0.25. The Bollinger Bands indicate that volatility is narrowing, suggesting that the market is preparing for a breakout. Importantly, the price has fallen below the 20-day moving average (approximately $0.24), and the short-term bearish tendency has turned bearish.
The delay of the ETF was the catalyst for this rejection, as traders were initially prepared to wait for regulatory approval, but ultimately saw no results. Once the news broke, weaker hands exited the market, leading the chart to be in a critical turning point area.
Key support and resistance levels
Immediate support level: $0.216 (slightly above the lower Bollinger Band). If it breaks below, Dogecoin may retest $0.19.
Major support levels: $0.15 to $0.16, a significant accumulation area from June to July.
Resistance level: $0.25 remains the upper limit. A breakout above $0.25 could open a pathway for an increase to $0.30 and above.
Currently, unless DOGE can quickly recover to $0.23 to $0.24, the bears remain dominant.
ETF Delay: Short-term Pain or Long-term Catalyst?
From a market sentiment perspective, the delay of the Dogecoin ETF typically creates short-term downward pressure. Traders had previously priced in bullish expectations, and now these positions are being liquidated. However, the fact that the Dogecoin spot ETF even appeared on the SEC's review list is historically significant. This indicates that Dogecoin is no longer just a meme coin—it is being positioned as an institutional-grade investment tool alongside Bitcoin and Ethereum.
This is a long-term bullish narrative; once approved, DOGE may see a significant influx of institutional funds.
Dogecoin Price Prediction: What will be the next move for Dogecoin?
In the short term, Dogecoin is expected to remain under pressure, consolidating between $0.19 and $0.23. If it decisively breaks below $0.19, it may accelerate down to around $0.15. On the other hand, if overall cryptocurrency market sentiment turns positive, and Dogecoin's price rises to $0.25, it could gain approval for an ETF later this year and rebound to $0.30.
This actually means that the delay of the ETF has shifted Dogecoin from a bullish breakout pattern to cautious consolidation. Traders should closely monitor the trading volume—any surge in buying near $0.19 could signal that Dogecoin's price has bottomed out, followed by the next round of upward movement.
