Dogecoin has maintained a strong level of $0.209 for 50 consecutive days, raising traders' expectations for a significant breakout.
REX Shares may launch the first U.S. Dogecoin ETF next week, following its Solana ETF strategy.
Despite a 116% increase over the year, Dogecoin's trading price remains well below its peak of $0.2129 in 2024, consolidating around this level.
Dogecoin ($DOGE) has held the support level of $0.209 for the past two months, sparking traders' anticipation for a significant breakout. The cryptocurrency has tested this price point multiple times, demonstrating some resilience as investors await events that could influence market trends.
Dogecoin's technical support is repeatedly tested at $0.209
Cryptocurrency analyst Ali Charts pointed out that $0.209 has become a key support level for Dogecoin. He stated on social platform X: "$0.209 is the key support level for Dogecoin $DOGE, which has been tested five times." Dogecoin has maintained this level for nearly 50 days.
Another market watcher, Sjuul from AltCryptoGems, commented on the continued decline in Dogecoin's price. Sjuul pointed out that $DOGE has maintained this support level for 50 days and has continued to decline during the consolidation period, expecting a strong move in the future. Traders are currently watching whether Dogecoin's breakout will be upward or downward.
The long-term adherence to this price floor has increased market interest in the token. The consolidation phase may precede a volatile trend.
Prospects for the first Dogecoin ETF
In addition to technological developments, Dogecoin may also make progress in financial products. Bloomberg analyst Eric Balchunas stated that REX Shares may launch the first Dogecoin ETF in the U.S. next week. He said, "It looks like REX will launch a Dogecoin ETF next week via 40 Act a la $SSK."
REX Shares recently filed a prospectus with the U.S. Securities and Exchange Commission. The issuer warned in the document that Dogecoin is a relatively new asset with unique risks. The document noted that the Dogecoin market is susceptible to rapid price fluctuations and uncertainty.
The fund follows the same regulatory path as REX in launching the Solana staking ETF. This path, known as the "40 Act," does not require the same filing as traditional cryptocurrency ETFs. Industry insiders describe it as an alternative method that can speed up product launches.
Competitive ETF filings and regulatory pathways
As REX prepares to launch, other issuers are also seeking approval. 21Shares submitted a proposal for a Dogecoin ETF through the standard process in April. Bitwise and Grayscale have also submitted similar applications. These applications are still under review by the U.S. Securities and Exchange Commission (SEC).
The REX strategy has gained attention because it avoids the delays associated with traditional ETF processes. ETF Store President Nate Geraci described this approach as "regulatory arbitrage." This allows REX to get ahead of competitors through different legal avenues.
REX has also applied for another fund tracking the digital asset "Trump Official Token" (TRUMP) under the 40 Act. This fund will invest in offshore companies holding the token. This indicates the issuer's broad interest in providing crypto-related investment products.
Dogecoin's market performance and broad interest
According to data from CoinMarketCap, Dogecoin has risen 116.67% over the past year. However, it is still 54% lower than its peak of $0.4672 in December 2024. As of this writing, the token is trading close to $0.2129.
Despite price fluctuations, Dogecoin continues to attract media and investor attention. Its connections with some high-profile individuals keep it in the public eye. Elon Musk, often associated with Dogecoin, called it a "scam" on the 2021 Saturday Night Live show. Additionally, reports have emerged that attorney Alex Spiro is serving as chairman of a company seeking to raise $200 million to invest in Dogecoin.
Dogecoin has been consolidating around $0.209, coupled with its potential for an ETF launch, making it a focal point once again. As market conditions evolve, traders are closely watching its breakout performance.
