Dogecoin price remained in a tight range on Thursday and Friday despite the warm reception of the first DOGE ETF in the United States.
Summary
- Dogecoin price has moved into a correction in the past few days.
- The newly launched DOJE ETF had a strong performance.
- Technicals suggest a rebound is possible ahead of the Act 33 DOGE approval.
Dogecoin (DOGE) moved into a correction after falling by 11% from its highest point this month. Its 24-hour volume was $3.4 billion, while its market cap was $40.9 billion.
Dogecoin price falls despite ETF success
Bloomberg’s Eric Balchunas noted that the Rex-Osprey Dogecoin ETF (DOJE) had a strong performance on the first day. Its trading volume was over $17 million, making it a top-five single-day launch in terms of volume in the last five years.
The strong showing was notable for three main reasons. First, DOJE was launched by REX-Osprey, which is a relatively small company in the asset management industry.
Second, DOJE is a highly expensive exchange-traded fund with an expense ratio of 1.50%. In contrast, the iShares Bitcoin Trust has a ratio of 0.25%, while the average passive and active ETFs have ratios of below 0.50%.
Second, DOJE is a high-cost exchange-traded fund with an expense ratio of 1.50%. In contrast, the iShares Bitcoin Trust has a ratio of 0.25%, while the average passive and active ETFs have ratios below 0.50%.
Finally, the strong performance suggests that other ETFs from companies such as Bitwise, Grayscale, and 21Shares will gain traction once approved, possibly in October. These funds will likely have lower expense ratios than DOJE. They will also use Act 33 rules, similar to the current Bitcoin (BTC) and Ethereum (ETH) fund.
Dogecoin price has pulled back as investors sell the ETF launch news and as sentiment in the crypto market wanes. Bitcoin and most altcoins have pulled back, with the total market cap moving to $4.05 trillion.
DOGE price technical analysis
The daily timeframe chart shows that the DOGE price has pulled back in the past few days. This retreat happened after it rose to a high of $0.3075, which coincided with the ascending trendline that connects the swing highs since May 11. It is common for an asset to pull back after hitting a crucial resistance level.
On the positive side, Dogecoin price is forming a bullish pennant pattern, pointing to an eventual rebound. More gains will be confirmed if it jumps above the upper boundary of the pennant pattern at $0.3075. This rebound will happen ahead of the DOGE ETF approval.
