A Top Crypto Asset Manager Has Doubled Down On Its Backing of Dogecoin

Top crypto asset manager 21Shares has doubled down on its backing of Dogecoin, asserting the meme coin is more than a joke due to its provision of actual utility. The company recently pointed to Dogecoin’s community orientation, speed of transactions, and low costs as important benefits in the cryptoverse.

As such, 21Shares highlighted that Dogecoin is capable of processing blocks every minute—about 10 times faster than Bitcoin. This technicality, in addition to its minimal fees, makes it particularly useful for small payments and tips, especially with firms such as Tesla, AMC Theatres, and Newegg now taking Dogecoin as payment.

Moreover, the Open House Group, one of the major real estate players listed on Japan’s Tokyo Stock Exchange, has just added Dogecoin. Payments processor BitPay has also assisted thousands of global merchants in taking DOGE on everyday transactions.

Over the past 10 years, Dogecoin has seen its value increase by 130,000%, which translates to an annual growth rate of nearly 130%. These figures, reported by 21Shares, place DOGE at the apex of the performance chart among the 25 largest cryptocurrencies based on market capitalization.

In contrast to Bitcoin’s fixed supply, there is no ceiling on the total amount of Dogecoin in circulation. A constant 10,000 DOGE is added to the network every minute, resulting in the creation of approximately 5.25 billion new tokens annually. 21Shares maintains that this linear mining system has led to decreasing inflation rates over time while securing the network.

The asset manager went from simply applauding Dogecoin to partnering with House of Doge to list the first Dogecoin ETP (Exchange-Traded Product) to bear the Dogecoin Foundation’s stamp of approval. The product provides institutional investors with a regulated vehicle for investing in Dogecoin without needing to directly purchase the cryptocurrency.

21Shares also submitted filings with the Securities and Exchange Commission last week for a possible Dogecoin ETF in the United States. They’re not the ones doing this—companies like Grayscale and Bitwise have done the same to create Dogecoin ETFs.

As traders keep a close eye on any potential price movements, the Relative Strength Index (RSI) on Friday is at 62.32, which signals excellent buying pressure but not yet reaching the overbought territory.

The technical indicator is now in the upper band of the RSI's standard range of 30 to 70, which is typically used to measure how quickly an asset's price is rising or falling over time.

Moreover, market observers observed that the MACD histogram has flipped to positive territory, which some short-term traders interpret as a “buy” sign. While deep-pocketed investors are likely exercising caution, retail traders are keeping an optimistic outlook with the next resistance level at $0.21.

If that level is breached, they predict that DOGE could rise as high as $0.24 or even $0.29, according to technical analysts who have been monitoring the cryptocurrency's performance closely.

"If the price manages to break through the 200-EMA, which is currently at $0.21, then we can expect an acceleration of the bullish trend, potentially pushing the price towards the Fib 0.382 level at $0.24 or even Fib 0.5 at $0.29," one analyst stated.

Under these trends, some market players anticipate that Dogecoin's increasing trend might continue.