Emily Walker
In the past day, Dogecoin has experienced a notable drop of 6%, reversing the upward trend observed just two days prior. This sudden decrease is alarming, especially considering it coincided with events that were anticipated to boost the meme coin’s positive momentum.
The latest reports about DOGE ETF applications created a buzz among crypto enthusiasts and on social media, with many hopeful that these filings would attract more institutional investors and trigger a price surge. Consequently, questions arise regarding the current decline in Dogecoin’s value.
Impact of Shiba Inu Imagery Removal on Sentiment
Dogecoin’s recent price drop comes at a time when news of DOGE ETF filings should ideally support its value. A key factor in this decline was the removal of Shiba Inu imagery from the D.O.G.E. website. The D.O.G.E, or Department Of Government Efficiency, was recently established by US President Donald Trump.
Even though the department has no direct link or practical use for DOGE, its acronym is remarkably similar to the meme coin’s symbol. There’s even speculation that the department may be headed by Elon Musk, who has often been referred to as the “Dogefather” due to his vocal advocacy for Dogecoin.
When the D.O.G.E. website launched two days ago, it featured the beloved Shiba Inu image closely associated with Dogecoin. This unexpected inclusion sparked interest among Dogecoin fans, leading to a temporary increase in its price and trading volume.
However, excitement quickly faded once the image was removed, mirroring a decline in DOGE’s price and a dramatic 75% drop in trading volume within a day.
Potential Dogecoin ETF Launch Could Boost Price
Filings for Exchange-Traded Funds (ETFs) associated with DOGE by REXShares and Osprey Funds have generated considerable interest in the crypto sphere. Soon after, Bitwise also submitted a filing for a Dogecoin ETF in Delaware. The timing of these applications aligns with the new pro-crypto administration in the US, which could create a beneficial regulatory climate for crypto-related financial products.
Some crypto analysts predict that the launch of a Dogecoin ETF could elevate DOGE prices significantly. For instance, analyst Ali Martinez forecasts that a Dogecoin ETF could push the price to $15, based on technical patterns observed since 2016.
As of now, DOGE is trading at $0.35, following a falling wedge pattern. Analysis suggests that the price could rise to $0.39 within the next 24 hours.