Bullish expectations for Dogecoin price action this month have so far been met with disappointment as the cryptocurrency failed to exit its current range.
This is despite receiving a substantial discount over the last 3 months and retesting a key support zone.
Dogecoin price has maintained an overall bearish trend that is for the most part in tune with the current market sentiment.
Its $0.255 was approximately a 47% discount from its highest price point in December.
Traders have been expecting Dogecoin price action to experience some bullish relief on account of its discount and other reasons.
For example, it recently demonstrated support near the $0.24 price level especially in the second week of February.
Another major reason for bullish expectations at recent lows was that price has been trading within the 0.5 and 0.618 Fibonacci range.
Dogecoin price action / source: TradingView
The Fibonacci retracement is based on lowest price levels in August last year and its December peak.
Demand is likely to manifest within this level under normal circumstances. Failure to do so means Dogecoin price action could continue declining.
Dogecoin’s MACD indicator was still in the negative at -$0.02 despite recently crossing above its signal line.
This was a sign of weak demand even though there was some bullish volume in the last few days.
Are ETF Approvals the Next Catalyst for Dogecoin Price Uptick?
The reality about Dogecoin price action currently is that it reflects the state of the overall crypto market.
Recent FUD resulted in weak demand but that could change soon. The Dogecoin community is off to some excitement this week and it largely has to do with the possibility of ETF approvals sometime soon.
Recent rumors suggest that Dogecoin ETFs could be approved as soon as next week.
Source: X
But with no official confirmation yet, investors should take this with a grain of salt.
Nevertheless, the possibility for Dogecoin ETF approvals has been rising and so has the market sentiment.
Polymarket perfectly encapsulates the shifting sentiment around the possibility of ETF approvals in 2025.
To put things into perspective, there was a 27% expectation of ETF approvals at the start of 2025. That figure has since gone up to 75% as at the time of observation.
Dogecoin Polymarket bets/ source: Polymarket
As the sentiment shifts around the potential for Dogecoin ETF approvals, it is also important to contemplate its impact.
DOGE is the leader in its meme coin segment and multiple ETF filings confirm strong institutional interest.
This means Dogecoin price action could soon benefit from robust liquidity inflows if ETFs are approved.
If ETFs open the flood gates of institutional liquidity, then DOGE could potentially sum up enough demand to push to $1. Possibly even beyond.
However, Its important to note that ETF approvals may not necessarily guarantee heavy liquidity inflows as has been the case with Ethereum.
Nevertheless, the prospects of ETF approvals may boost appeal considering that Dogecoin price action is currently at a healthy discount.
