The recent lackluster performance of Dogecoin's (DOGE) price has sparked interest among bargain hunters.
As the largest meme token by market capitalization, Dogecoin has seen a nearly 5% decline, falling to 26 cents, based on CoinDesk’s data. Nevertheless, institutional investors are taking advantage of this dip, acquiring 680 million DOGE tokens.
This surge in accumulation aligns with improving regulatory clarity, as anticipation builds around the expected approval of the first U.S.-listed spot Dogecoin ETF, according to CD Analytics.
On Tuesday, CleanCore Solutions announced its purchase of an additional 100 million DOGE, elevating its treasury holdings to over 600 million DOGE.
The Rex Shares-Osprey Dogecoin ETF (DOJE) is anticipated to launch this week, providing investors with exposure to the cryptocurrency without the need to own or store it.
Key AI insights
- Interest in Dogecoin from corporations surged during the period of September 16-17 as institutional buying and regulatory updates regarding ETF proposals defined new investment landscapes.
- Corporate trading desks are closely watching DOGE's $0.01 range, indicating 5% volatility between resistance at $0.27 and support at $0.26.
- Institutional selling aimed at $0.26, supported by a significant trading volume of 945.89 million, established corporate support levels. Concurrent institutional purchases have raised resistance towards $0.27 with a volume of 629.60 million, showcasing corporate buying strategies.
- Confirmation of volume-based support at the $0.26 mark, following immediate institutional recovery, substantiates the corporate adoption theory.
- Resilience in the critical support zone during a 60-minute sell-off reflects institutional commitment to current price points.
- A technical breakout from a multi-month consolidation phase is drawing corporate treasury interest, projecting a $0.50 price target.
Focus on DOGE/BTC
The Binance-listed dogecoin-bitcoin ratio (DOBE/BTC) may experience significant gains if the Federal Reserve cuts rates as anticipated on Wednesday, setting the stage for aggressive easing in the months to come.
This is significant, as the DOGE-BTC ratio has formed a bullish inverse head-and-shoulders pattern. Essentially, the environment is primed for a substantial DOGE rally relative to BTC.
The Federal Reserve is largely expected to decrease interest rates by 25 basis points to 4% later on Wednesday. With traders assigning a 99% likelihood to this adjustment, it is nearly a foregone conclusion in the market.
This implies that attention will now turn to the Fed’s signals regarding future cuts. DOGE proponents will be hoping that the Fed downplays inflation concerns, indicating quicker, more aggressive rate cuts in the months ahead.
