output: Despite its lighthearted reputation, Dogecoin (CRYPTO: DOGE) remains the eighth-biggest cryptocurrency by market value, currently valued at $26 billion. A closely followed crypto analyst has identified one catalyst that could propel DOGE to new highs.

In a recent strategy session, crypto trader Ali Martinez, known for his technical analysis expertise, is advising his 136,400 followers on X, formerly Twitter, to watch the $0.20 level on Dogecoin.

As crypto prices continue to rise rapidly, with Bitcoin (CRYPTO: BTC) on the verge of reclaiming $70,000 and several altcoins notching substantial gains, Martinez sees the potential for a significant move in Dogecoin this month.

According to the crypto trader, if Dogecoin closes above the $0.20-$0.21 band this month, it will mark the breakout of a strong resistance zone that has been preventing its parabolic rally since early 2022.

“Dogecoin would be setting up for a potential 300% to 400% move from the breakout level.”

If this occurs, it could serve as a precursor to a move higher, with the world’s largest and oldest meme coin potentially rallying back toward its current lifetime peak of around $0.74.

“Such a breakout would signal strong bullish momentum and potentially attract increased investor interest.”

Also Read: Hopes Of Dogecoin (CRYPTO: DOGE) Being Included In D.O.G.E. Dashed As Elon Musk Sets Record Straight

Dogecoin ETF

The Dogecoin community is closely watching the U.S. Securities and Exchange Commission (SEC) as it reviews multiple DOGE-related applications.

Earlier this year, Bitwise, Grayscale (NYSE:GTC), 21Shares and Osprey Funds filed for Dogecoin ETFs with the SEC. Recently, the regulator delayed taking the next steps for several proposals and is due to make a decision on Grayscale’s ETF application on May 21.

According to Bloomberg Senior ETF analyst Eric Balchunas, the chances of a spot DOGE ETF getting approved in the coming months are 75%. An ETF approval would provide a regulated investment vehicle for traditional investors, potentially boosting Dogecoin’s exposure and validation in the wider financial realm.

With the product likely to capture a small fraction of the inflows seen by the spot Bitcoin (CRYPTO: BTC) ETFs, which collectively manage over $29 billion, it remains to be seen how much of an impact it will have on DOGE prices.