Dogecoin price could be about to explode higher after forming an inverse head-and-shoulders pattern and as the crypto market bull run continues.
Summary
- Dogecoin price has formed an inverse head-and-shoulders pattern.
- It has moved into the third phase of Elliot Wave pattern.
- DOGE ETF and corporate treasuries will boost its price.
Dogecoin (DOGE) token was trading at $0.2400, down by 3.47% from its highest level this week. It remains about 27% above the lowest level this month.
Dogecoin price technical analysis
The four-hour chart shows that DOGE price bottomed at $0.1890 on August 4 and then rebounded to a high of $0.2485.
A closer look shows that the coin has formed an inverse head-and-shoulders pattern. This pattern’s head is at $0.1890, while the two shoulders are at $0.2200.
This pattern’s neckline is at $0.2486, meaning that the pattern’s height is about 24%. Measuring this distance from the neckline gives a target of $0.3058, up about 25% from the current level.
The chart also shows that DOGE price has moved into the third phase of the Elliott Wave pattern. It has already completed the first phase, which was formed between August 2 and August 9. The second phase was completed on August 12.
Therefore, moving above $0.2488 will invalidate the double-top pattern and confirm the Elliott Wave count. The third phase will likely push it to the inverse head-and-shoulders target at $0.2877.
DOGE ETF could lead to more inflows
A key catalyst for DOGE price is the potential launch of Dogecoin exchange-traded funds by companies like Bitwise, Grayscale, 21Shares, and Rex Shares.
Recent data shows substantial demand for cryptocurrency ETFs. For example, the iShares Bitcoin Trust is nearing $90 billion in assets, while all Ethereum ETFs have had over $11 billion in inflows.
Polymarket data shows that participants have a 61% chance that the SEC will approve these funds.
Meanwhile, the weighted funding rate has remained in the green since July 6, a sign that investors anticipate the future price to be higher than it is today.
Dogecoin futures open interest rose to $3.39 billion from this month’s low of $3 billion. Rising open interest is bullish for a coin because it indicates higher demand in the futures market.
Another catalyst is that more companies could start adding DOGE into their balance sheets. Bit Origin is raising $500 million to buy DOGE. Other companies with it in their treasuries are C2 Blockchain, Heritage Distilling, Spirit Blockchain, and Neptune Digital Assets.
