"Clone Season": Dogecoin ETF Is Here, Where Will It Go This Time?

With the interest rate cut approaching, the profit-making effect of altcoins has significantly improved since the weekend, with many altcoins showing signs of activity; the news that Dogecoin spot ETF may be approved this week on Friday of last week triggered the market. The holding company of Trump's eldest son announced that it will also purchase DOGE and Dogecoin mining machines. After a long period of consolidation, DOGE broke through. Is this a pump and dump? If it is a real breakout, where could it ultimately go?

Positive News

On September 5, Bloomberg ETF analyst Eric Balchunas said on Thursday: "REX is expected to launch the DOGE spot ETF next week under the Investment Company Act of 1940."

REX-Osprey submitted the prospectus for the REX-Osprey DOGE ETF to the U.S. Securities and Exchange Commission (SEC) on Wednesday. Just as REX-Osprey launched the Solana Staking ETF earlier this summer, its first DOGE spot ETF is likely to be the first to list. At the same time, among the more than 90 crypto-related ETF proposals awaiting SEC review, Grayscale and Bitwise also announced plans to launch a DOGE spot ETF.

Additionally, on September 5, Thumzup (TZUP), a media company owned by Trump's eldest son, released a shareholder letter stating that the company had spent $1 million to purchase Bitcoin, and its board had authorized the increase in holdings of DOGE, LTC, SOL, XRP, ETH, and USDC, as well as the purchase of 2,500 DOGE mining machines, with potential to buy an additional 1,000 mining machines later.

Both pieces of news are relatively substantial positive factors for DOGE.

High Probability of Real Breakout on Technical Charts

First, check if there is a risk of a decline in the overall market. In previous articles, the overall market is expected to have a rebound, and it is currently in the process of oscillating and rebounding. At least, the risk of a sharp drop is low. The 110,000 level was lost and regained, and it is gradually shifting towards the bullish side. As long as it can maintain the oscillation, altcoins are expected to have a wave of performance.

Looking at the monthly chart, DOGE has formed a triangular oscillation range over the past three months. However, from April, it has formed an upward channel. After the weekly candlestick pattern known as the "Morning Star" appeared last week, DOGE re-entered the upward trend above the MA5;

Looking at the weekly chart, DOGE has been guarding the middle band of the Bollinger Bands, which is gradually opening up, expecting to move upwards;

Looking at the 2-day chart, the consolidation and breakout of DOGE is quite obvious, staying in a narrow range between 0.2 and 0.22 for nearly 10 days before choosing to go upwards. The bottom has been fully formed, making the probability of a real breakout relatively high, but it faces new resistance in the short term;

Looking at the daily chart, the previous day's bullish candle has directly crossed the MA5 and MA30. If the next two days close with a golden cross, then the MA5, MA30, MA120, and MA200 of DOGE will form a complete bullish arrangement;

Subsequent rebounds that can hold the support will confirm the real breakout. The first area to watch is 0.221-0.226. If there is a deep pullback, it should not break 0.213-0.218;

If the pullback does not break through, it is expected to move upwards to challenge the resistance levels of 0.25-0.27. In an optimistic scenario, it could reach near 0.3. We'll see as it goes.

Author: Aaron, ChainThink