Excitement about Dogecoin ETF: Is the DOGE $5 target real?

Dogecoin (DOGE) is extending its upward trend with an impressive recovery, reinforcing the optimistic sentiment in the market. However, unexpected moves from whales in the past 48 hours have raised questions among investors about the sustainability of this positive trend.

Whales dumped 200 million DOGE

A cryptocurrency expert recently revealed on-chain data showing that Dogecoin "whales," holding between 10 million and 100 million DOGE, have dumped up to 200 million tokens within just 48 hours.

The large-scale sell-off in this volatile market is seen as a warning bell, with the potential to create negative psychological pressure if the trend continues.

Although DOGE has managed to recover, increasing by 0.82% to 0.216 USD, the excitement among investors remains quite muted. A clear indication of this is that the trading volume over the past 24 hours has decreased by an additional 15%.

Speculation about DOGE ETF drives price predictions

Although the level of market participation is still quite modest, bold predictions about Dogecoin have recently emerged on X (formerly known as Twitter).

Some analysts believe that if it surpasses the resistance level of 0.21 – 0.22 USD, DOGE could very well move towards the milestone of 0.30 USD. On the contrary, there are also optimistic predictions that are considered unrealistic, expecting DOGE to soar to 1 USD, even 5 USD in just a few weeks.

In the world of cryptocurrency, any scenario can occur when strong catalysts converge with market momentum – and these factors are gradually taking shape.

Notably, Bloomberg ETF expert Eric Balchunas recently revealed that REX Shares may launch a Dogecoin ETF under the 40 ACT next week. He stated that Dogecoin is likely to become the first cryptocurrency to have its own ETF, while the market is also discussing the potential emergence of ETFs linked to Trump, XRP, and Bonk in the future.

Currently, DOGE is moving sideways within a narrow accumulation range of 0.208 – 0.223 USD over the past week. After hitting the support level, this memecoin is gradually bouncing up to test the resistance area above. This trend indicates that only by breaking out of the accumulation zone can DOGE initiate a clear trend breakout.

Important milestones to watch

According to technical analysis from Bitcoin Magazine, Dogecoin (DOGE) is approaching a critical level. If it breaks above the upper boundary of the accumulation range, the price could increase by another 10%, reaching the mark of $0.245. Conversely, a drop below the lower boundary could pull DOGE down by 10% to the area of $0.19.

Source: TradingViewCurrently, the Supertrend indicator remains in the red zone and hovers just above the price, signaling that the downtrend has not yet ended and selling pressure may increase. In parallel, the Relative Strength Index (RSI) is at 52.5 – a neutral zone, reflecting a balance between buyers and sellers.

It is noteworthy that if the RSI exceeds the threshold of 60, bullish momentum may be strongly triggered, while falling below 45 opens up the risk of more intense selling pressure.

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