Dogecoin price stalls as DOGE ETF approval odds fall

Dogecoin price has remained in a tight range this week as Polymarket drops the odds of a potential DOGE ETF.

Dogecoin (DOGE), the biggest meme coin, rose nearly 6% on December 2, bringing its seven-day gain to 7.5%. But the momentum could be reversing, with a Polymarket survey showing the odds of the Securities and Exchange Commission approving the spot DOGE ETF this year falling to 26% from a high of 50% last week.

In contrast, Polymarket users expect the SEC to approve the Solana (SOL) ETF later this year, with odds at 76%. The probability of Ripple (XRP) ETF is 70%.

The slim odds for the DOGE ETF are likely due to the lack of filings by any financial services companies. In response, $100 billion asset manager WisdomTree has applied 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 could apply for a Dogecoin ETF if the SEC under Paul Atkins shows flexibility regarding crypto funds. Such an ETF could see approval more easily since Dogecoin is a proof-of-work cryptocurrency similar to Bitcoin.

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

Crypto ETFs are doing well because they help institutional investors gain access to the sector. Bitcoin ETFs currently have over $105 billion in assets, while Ethereum funds have over $12 billion in assets.

Dogecoin price analysis DOGE price chart | Source: crypto.news

The daily chart shows that DOGE dropped to $0.2635 in December and has since risen to $0.3382. The Relative Strength Index has moved towards the 50-day moving average while trying to break above the descending trend line.

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

As a result, the coin is likely to recover with the bulls targeting resistance at $0.4836, the highest reached in 2024. Conversely, a decline below the $0.2650 support level could signal more downside potential.