Analyst predicts Dogecoin’s potential for upward movement as Bitwise’s ETF application advances

Dogecoin, a cryptocurrency that has been experiencing a correction phase, recently caught the attention of a prominent trader who is optimistic about its future. Trader Tardigrade, known for their positive stance on the digital asset, emphasized the formation of a triangle pattern that resembles the pattern seen during the 2017-18 market boom.

In technical analysis, a triangle pattern is a continuation pattern that takes on a triangular shape on a price chart. Typically, when the price breaks out from a symmetrical triangle, it tends to follow the direction of the initial movement before the triangle formation. In this case, Trader Tardigrade anticipated that Dogecoin would break out to the upside and mirror the previous bullish cycle.

The trader shared their observations on social media, pointing to the potential for a surge in Dogecoin’s value. This wave of positivity was not limited to individual investors but extended to the futures market as well. Data from Coinglass revealed that more than 80% of traders on Binance had taken long positions on Dogecoin, indicating a strong belief in the coin’s future growth.

The underlying confidence in Dogecoin’s prospects could be attributed to the increasing likelihood of approval for a Dogecoin exchange-traded fund (ETF) this year. Market sentiment, as reflected in the odds on the Polymarket prediction platform, showed a significant uptick in favor of such an approval. Moreover, NYSE Arca, a subsidiary of the New York Stock Exchange, recently filed a 19b-4 application seeking permission to list shares of the ETF proposed by Bitwise Asset Management. This filing marked a crucial step in the approval process following Bitwise’s submission of S-1 documents earlier in the year.

As of the latest data available, Dogecoin was trading at $0.1926, reflecting an 11.56% decrease in value over the past 24 hours and a 38.97% decline year-to-date. Despite these fluctuations, the overall market sentiment remains positive, driven by expectations of a potential surge in Dogecoin’s value fueled by the formation of a triangle pattern and the prospects of an ETF approval.

In conclusion, while the cryptocurrency market is known for its volatility, traders and investors continue to monitor developments closely, such as the formation of technical patterns and regulatory approvals, to assess the potential for future price movements. As the crypto landscape evolves, staying informed and analyzing market trends remain essential for making well-informed investment decisions.