Dogecoin price stalls as DOGE ETF approval odds fall

Dogecoin price remained in a tight range this week as Polymarket odds for a potential DOGE ETF declined.

Dogecoin (DOGE), the largest meme coin, rose by about 6% on Dec. 2, bringing its seven-day gains to 7.5%. However, the momentum may reverse as a Polymarket poll shows that the odds of the Securities and Exchange Commission approving a spot DOGE ETF this year dropped to 26%, down from a high of 50% last week. 

In contrast, Polymarket users expect that the SEC will approve a Solana (SOL) ETF later this year, with odds being at 76%. The odds of a Ripple (XRP) ETF are at 70%.

The weaker odds for a DOGE ETF likely stem from the absence of an application by any financial services company. In contrast, WisdomTree, a $100 billion asset manager, has filed for a Ripple ETF. Additionally, the SEC has a Jan. 31 deadline to approve or reject Solana ETFs proposed by companies like Grayscale, 21Shares, and VanEck.

Still, there is a possibility that one or more companies will file for a Dogecoin ETF if the SEC, under Paul Atkins, shows flexibility on crypto funds. Such an ETF could see approval more easily, as Dogecoin is a proof-of-work cryptocurrency similar to Bitcoin.

DOGE also holds a significant position in the crypto industry, with a market cap of $50 billion—approximately $16 billion lower than MicroStrategy’s. MicroStrategy has multiple leveraged and covered call ETFs.

Crypto ETFs are doing well as they are helping institutional investors gain access to the industry. Bitcoin ETFs now hold over $105 billion in assets, while Ethereum funds have over $12 billion. 

Dogecoin price analysis

The daily chart shows that DOGE bottomed at $0.2635 in December and has since recovered to $0.3382. It has moved toward the 50-day moving average, while the Relative Strength Index is attempting to break above the descending trendline. 

The Percentage Price Oscillator has formed a bullish crossover. Additionally, the accumulation and distribution indicator remains elevated, suggesting that investors are gradually accumulating DOGE.

As a result, the coin is likely to rebound, with bulls targeting the resistance at $0.4836, the highest level reached in 2024. Conversely, a drop below the support level of $0.2650 would signal further downside potential.