In recent times, the cryptocurrency industry has achieved an astonishing victory over the traditional financial sector, propelling the mainstream adoption of various altcoin projects. This shift is significantly influenced by the increasing support of crypto-friendly leaders in the United States, which has fundamentally altered the perception of digital assets. Institutional investors have shown a marked interest in these assets over the past few weeks, further driving this transformation.
Moreover, a growing number of investment fund managers have begun filing for spot altcoin ETFs, including those for Solana, XRP, and Litecoin, with the U.S. Securities and Exchange Commission (SEC). With the burgeoning macro crypto bull market, the web3 industry anticipates an inflow of more funds in the near future.
The Potential for a Dogecoin Spot ETF
Dogecoin (DOGE) continues to hold its position as a leader in the memecoin sector, largely due to the steadfast support from tech magnate Elon Musk. The Dogecoin network, underpinned by the robust proof-of-work consensus mechanism, boasts over 5.9 million on-chain holders. Despite this, no pro-crypto investment fund managers have yet filed for a spot Dogecoin ETF with the US SEC.
According to Eric Balchunas, a senior ETF analyst at Bloomberg, the inauguration of U.S. President-elect Donald Trump could set a new benchmark for investment fund managers to initiate filings for a spot Dogecoin ETF. Additionally, the appointment of Paul Atkins as the US SEC chair is expected to substantially enhance the likelihood of crypto ETF approvals. Balchunas noted, “If I’m Vegas my favorite on reserver of $DOGE ticker is Venuto. That said Tuttle is my fav to file for the ETF.”
Crypto Whales on a Buying Spree
Recent on-chain data analysis from Santiment reveals that crypto whales have purchased 250 million Dogecoins, valued at more than $77 million, during a recent market dip. Consequently, Dogecoin whales possessing balances ranging from 1 million to 10 million units now control over 10.7 billion DOGE units, which represents nearly 1 percent of the total circulating supply.
Midterm Targets for Dogecoin
Dogecoin’s price has been navigating a midterm correction phase after experiencing notable gains over the past two months. As a large-cap memecoin, with a fully diluted valuation of approximately $47 billion and a daily average traded volume of around $5 billion, it is currently testing support at the 0.5 daily Fibonacci Retracement level. This could potentially lead to a significant rebound soon.
On a weekly basis, the DOGE price is setting its sights on an all-time high, as indicated by the Relative Strength Index (RSI), which has surged above the 85 percent threshold for the first time since mid-2021.
