Dogecoin Nears Breakout Zone as ETF Buzz and Chart Patterns Align

DOGE’s V-shaped recovery signals strong demand at lower price levels.
ETF approval speculation boosts investor confidence and buying interest.

Dogecoin (DOGE) has reached a key technical threshold, attracting attention from traders and analysts. According to reports, Dogecoin has approached the 100% Fibonacci extension level on the 1-hour Binance chart, trading around $0.2020. This technical indicator often serves as a notable resistance area for altcoins.

Analysts employing Elliott Wave Theory have observed that DOGE appears to be in the third wave of a five-wave impulsive structure. The corrective phase is believed to have concluded, and the current upward movement is being identified as Wave (3).

DOGE is currently trading slightly above this level at $0.2021. Should the price successfully close above $0.213, analysts suggest it could signal the commencement of a new bullish trend. Subsequent price action will likely determine whether this movement is a short-lived bounce or the beginning of a more sustained upward trend.

V-Shaped Recovery Shows Strong Demand

Dogecoin has demonstrated a notable V-shaped recovery. At the time of this report, the token experienced an intraday low of $0.1941 but quickly rebounded to $0.1963. This represents a 1.07% increase over the past 24 hours.

Analysts interpret this V-shaped formation as an indication of renewed market confidence and robust demand at lower price points. Such rapid reversals often signify a shift in momentum from sellers to buyers. If the current buying pressure persists, DOGE may retest the $0.20 resistance level.

ETF Speculation Boosts Sentiment

Dogecoin's momentum has also been supported by speculation surrounding a potential DOGE exchange-traded fund (ETF). According to data, there is currently a 68% probability of DOGE ETF approval by December 31, 2025, reflecting a 31% increase from previous estimates.

Bitwise Asset Management’s Chief Investment Officer, Matt Hougan, recently alluded to productive discussions with the U.S. Securities and Exchange Commission. Bitwise has already submitted filings for ETFs linked to Dogecoin, XRP, and Solana.

Hougan posited that low-cost ETF structures could attract both institutional and retail investors seeking regulated exposure to DOGE.

The ETF speculation aligns with broader regulatory developments within the U.S. crypto sector. With growing bipartisan support, DOGE continues to gain prominence as part of the expanding range of digital assets being considered for mainstream financial products.