Nasdaq is preparing to list 21Shares’ Dogecoin (CRYPTO: DOGE) ETF, bringing a major milestone in the cryptocurrency’s journey toward mainstream adoption.

This development comes as Bitwise seeks approval for two Dogecoin ETFs and Grayscale (NYSE:LIT) applies to convert its Grayscale Dogecoin Trust (DOGECOIN) to an ETF.

Top traders are now setting their sights on a potential 200% rally in Dogecoin as it continues to recover from recent lows and trades at $0.17 at the time of writing.

What Happened: As part of a broader wave of crypto ETF proposals, 21Shares submitted applications for Bitcoin (CRYPTO: BTC) and Ethereum (CRYPTO: ETH) ETFs to be listed on Nasdaq. These applications follow the filing of two Dogecoin ETFs by Bitwise earlier in the year and Grayscale’s move to apply for the conversion of its Grayscale Dogecoin Trust to an ETF.

Earlier this month, the Securities and Exchange Commission (SEC) postponed rulings on both Bitwise’s Dogecoin ETF and Franklin Templeton’s XRP ETF until June. This further extends the regulatory uncertainty that has been hanging over the crypto industry.

President Donald Trump also ordered the SEC to take a more flexible stance toward cryptocurrencies in a recent executive order.

Also Read: Institutional Interest In Bitcoin Remains High Despite Recent Price Pullback, Glassnode Report Reveals

However, despite the enthusiasm for Bitcoin and Ethereum ETFs, market participants are skeptical about investors’ interest in altcoins.

“Having your coin get ETF-ized is like being in a band and getting your songs included on all the music streaming services,” said Eric Balchunas, an analyst at Bloomberg, in a recent analysis. “It doesn't necessarily get you more listeners, but it puts your song in the place where most of the listeners are.”

Dogecoin Price Action: Several technical indicators suggest that Dogecoin could be preparing for a significant upward trend.

According to Crypto Bio, Dogecoin is forming its second bullish divergence pattern over the past year. The first such pattern occurred between June and August of 2024, as the price dropped from $0.07 to $0.09, and the Relative Strength Index (RSI) formed higher lows.

This trend was followed by a strong surge that saw DOGE rally to $0.40 by December.

Between March and April of this year, Dogecoin is once again forming lower price lows, currently at around $0.13, while the RSI is again creating higher lows, which is a classic sign of bullish divergence and suggests increasing momentum.

Analyst "abermix" pointed out that Dogecoin has been finding support at a long-term parabolic trendline since its price movements in 2022-2023 from $0.05.

Whenever the price of Dogecoin has threatened to break below this trendline at several price points - at $0.06, $0.08, and $0.14 - it has managed to rebound and continue its rally.

Recent technical studies indicate that Dogecoin has broken out of a "falling wedge" pattern, which has been containing it in a downtrend for several months. This breakout is typically viewed as a positive development.

Dogecoin Price Prediction: One analyst predicts that Dogecoin could hit $0.50 in the next two to three months.

This price target represents an increase of 185% from current price levels and would place an initial investment of $10,000 at a value of roughly $27,530 at this price point.

However, to become a Dogecoin millionaire at the $0.50 price target, an investor would need approximately 2 million coins, which would require an initial investment of about $360,000 at present levels.

Another trader, known as Tardigrade, is setting his sights even higher, suggesting that Dogecoin could eventually rise to $1, which would be a 498% gain from current levels.

Tardigrade’s analysis focuses on the Gaussian Channel indicator and the weekly chart patterns of Dogecoin.

Key Levels to Watch: For May and the upcoming quarter, Dogecoin is approaching several key price levels to watch.

In terms of support, traders could look for bids to emerge at the 200-week Simple Moving Average (SMA) around $0.11, the 61.8% Fibonacci level at $0.13, and the 50% Fibonacci level at $0.15.

On the resistance side, traders might anticipate sellers to return at the 23.6% Fibonacci level at $0.20, the 38.2% Fibonacci level at $0.24, and the 200-week SMA at $0.27.

Short-term sentiment indicators are showing mixed signals. The Bull Bear Power indicator is suggesting a "Sell" signal due