Dogecoin price prediction: Futures demand and ETF momentum build case for $1

Dogecoin price has rallied this month, mirroring the performance of Bitcoin and most altcoins.

Dogecoin (DOGE), the biggest meme coin in the crypto industry, rose to $0.2357 on Wednesday, up by almost 80% from its lowest point in April. This recovery has led to speculation that it may jump to $1 during this cycle.

Dogecoin has a few catalysts that may support its upward trend. The most notable is the potential approval of DOGE ETFs filed by companies like Bitwise, Grayscale, 21Shares, and Rex Shares.

Polymarket oddsof a spot DOGE ETF approval have risen to 63%, up from this month’s low of 60%. These odds have increased because Dogecoin is a proof-of-work coin like Bitcoin (BTC), meaning the SEC may not consider it a security.

Another potential catalyst for Dogecoin is the continued rise in volume in both the spot and futures markets. CoinGecko data shows that 24-hour trading volume jumped to $3.14 billion, higher than Shiba Inu’s (SHIB) $3.17 billion and Pepe’s (PEPE) $2.3 billion.

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CoinGlass data shows that Dogecoin’s futures open interest stood at $2.92 billion on Wednesday, a significant increase from last month’s low of less than $1 billion. The interest has remained above $2 billion since May 9.

Futures open interest is an important metric because it reflects the number of active contracts yet to be settled. A higher open interest indicates growing demand and liquidity.

Dogecoin may also benefit from the expected surge in Bitcoin price, as the two assets have a close correlation. Analysts at Standard Chartered, for example, have set a target of $200,000 for Bitcoin.

Dogecoin price technical analysis

DOGE price chart | Source: crypto.news

The three-day chart shows that Dogecoin has gradually formed a large accumulation cylinder since October 2023. This structure is made up of two ascending and diverging trendlines, also known as a rising wedge or megaphone pattern.

The accumulation cylinder follows seven key points, which are illustrated in the chart above. A bullish breakout typically occurs at the seventh point in this formation.

If the pattern holds, DOGE could rally toward the psychological level of $1. To do so, it must first break above the sixth level at $0.4877 and then surpass its all-time high of $0.7517 to confirm the bullish outlook.

One caveat to this Dogecoin price prediction is that it’s based on a three-day chart, suggesting that a 325% rally to $1 may take several months, or even over a year, to play out. For example, the move from point 6 to 7 took more than five months to complete.

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