Dogecoin ETF: Will It Skyrocket to $20 or Crash and Burn?

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Since its debut, Dogecoin has consistently drawn investor interest due to its outstanding performance on various occasions. Today alone, the price of Dogecoin increased by 11% and is currently undergoing an impressive rebound, reaching a new high for the month. While this uptick coincides with the broader market recovery, the excitement surrounding the potential Dogecoin ETF seems to have had a more significant impact, particularly as Trump’s inauguration approaches.

Is Dogecoin ETF Getting Launched In 2025?

In simple terms, the launch of a Bitcoin ETF early in 2024 paved the way for other crypto-based exchange-traded funds. The success and strong investment in the Bitcoin ETF led to an increase in Bitcoin’s price, which boosted demand for a Dogecoin ETF. Analysts argue that creating an ETF for the meme coin Dogecoin could be logical due to its high popularity, usage, and effect on its token’s value. However, the odds from Polymarket suggest that investors are not very confident about the launch of a Dogecoin ETF in 2025 (36% chance), while there is a higher likelihood (70%) for an XRP ETF to be approved.

Given the promising ETFs in development, particularly those focused on utility-based assets, the likelihood of their approval appears high. In fact, the Polymarket odds prior to July are only 27%, despite a 6% increase. Nevertheless, despite the unfavorable odds, numerous firms have filed applications for these ETFs.

Instead of focusing on the views of Dogecoin investors, let’s consider a unique viewpoint. While DOGE is well-known and widely used, it has some significant drawbacks such as limited practical use and high price fluctuations. Some financial analysts believe that launching an ETF for DOGE could be risky. However, the SEC’s opinion on this matter remains unclear at present.

Why DOGE ETF Matters?

Analogously to how the Bitcoin ETF spurred Bitcoin’s price surge to an all-time high, experts predict that the launch of a DOGE ETF could lead Dogecoin to surpass the $1 price mark and reach even greater heights. This would provide a more stable investment opportunity for those reluctant to navigate the extreme volatility associated with meme coins. Remarkably, this development may also help stabilize Dogecoin’s own volatile nature.

In 2024, Meme coins have proven to be the most thriving type of digital assets, yielding significant profits for numerous investors. The introduction of an ETF might enhance the reputation and value of these meme-inspired cryptocurrencies even more.

Can Dogecoin Price Hit $20 With ETF Approval?

At present, Dogecoin is valued at approximately $0.4162, and for it to reach $20, it would need a massive increase of around 50 times its current value. Given the history of meme coins so far, this goal seems rather distant in the near future. However, with the recent approval of an ETF, there’s a possibility that the Dogecoin price might approach the $20 mark. This optimistic view is shared by many experts, especially when comparing it to Bitcoin’s price surge following the approval of its own ETF.

That being said, we should also keep in mind previous instances such as the failed Ethereum ETF, which did not lead to a significant increase in Ethereum’s price. So, while the bullish outlook may suggest a potential rise to $20 for Dogecoin, it is crucial to consider both positive and negative factors that could influence its price movement.

Currently, Dogecoin is experiencing a surging trend, climbing by 11% over the past day and an impressive 173% since Trump’s victory in the US elections back in November 2024. With another rally like this, the price could even exceed $1. Remarkably, well-known crypto analyst Ali Martinez predicts that if this trend continues, Dogecoin’s value might reach an astounding $20 in the future years.

In the near future, moving past the 50% Fibonacci level could cause the price to drop to approximately $0.480. If we manage to break and hold this $0.480 level (which is now the 100% Fibonacci level), it may trigger a surge towards $0.566, driven by the Relative Strength Index (RSI) suggesting a bullish trend.

Bottom Line

2024 has been an exciting year for me as a crypto investor, with numerous positive developments such as the launch of ETFs, Bitcoin’s price surge, and Trump’s supportive stance towards cryptocurrencies. Looking ahead to 2025, experts predict that this favorable trend will continue but with even greater momentum. As a Dogecoin enthusiast, I eagerly await the potential launch of a Dogecoin ETF this year, although data from polymarket suggests that the chances are slim, indicating that investors have low confidence in its approval. If it does get approved, analysts believe the Dogecoin price could potentially reach $20 per coin. However, the success of Dogecoin will ultimately depend on its market acceptance and demand.

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2025-01-17 13:40