TLDR
- Dogecoin dropped 7% to $0.2625 ahead of Rex-Osprey ETF launch expected Thursday
- Liquidations totaled $26.28 million in 24 hours, with long positions accounting for $21.81 million
- Technical analysts view the decline as temporary pullback before potential ETF-driven rally
- Key resistance at $0.29 with breakout target of $0.50 if volume supports the move
- Federal Reserve meeting uncertainty and broader market jitters contributed to selloff
Dogecoin experienced a sharp 7% decline to $0.2625 as traders liquidated positions ahead of the historic Rex-Osprey DOGE ETF launch. The meme coin led losses among top cryptocurrencies despite growing anticipation for Thursday’s debut.
The Rex Shares-Osprey Dogecoin ETF, trading under ticker DOJE, represents the first U.S. ETF focused on a meme coin. Bloomberg analysts Eric Balchunas and James Seyffart expect the fund to launch Thursday after multiple delays.
DOGE had surged 16% over the past month as excitement built around the ETF. Whales accumulated over 280 million tokens while futures open interest climbed to $4.5 billion, indicating strong institutional interest.
Coinglass data reveals $26.28 million in Dogecoin positions were liquidated within 24 hours. Long positions dominated the liquidations at $21.81 million, driving the sharp price reversal from recent highs.
The broader cryptocurrency market faced headwinds ahead of this week’s Federal Reserve policy meeting. Markets anticipate a 25 basis point rate cut, though uncertainty about monetary policy direction weighed on risk assets.
ETF Structure and Market Impact
The DOJE fund will use a Cayman Islands subsidiary to gain exposure through futures and derivatives rather than holding actual DOGE tokens. This structure sidesteps custody requirements while providing traditional brokerage access.
The fund operates under the Investment Company Act of 1940, differing from bitcoin ETFs approved under the Securities Act of 1933. DOJE carries a 1.5% expense ratio without leverage features.
Several firms including 21Shares, Bitwise, and Grayscale have filed applications for spot DOGE ETFs that would hold actual tokens. These traditional applications remain under SEC review.
The launch marks a milestone for meme coin institutionalization. Dogecoin generally lacks utility compared to other cryptocurrencies, drawing value from internet culture and speculative trading.
CleanCore Solutions holds over 500 million DOGE tokens worth $125 million as the official treasury partner. Such institutional backing could provide price stability during volatile periods.
Dogecoin Price Prediction
Technical analysts maintain optimistic price targets despite Monday’s decline. Crypto analyst Ali Martinez identified key resistance at $0.29, with potential breakout targets reaching $0.50.
Short-term charts show a bullish pennant pattern that typically resolves in the direction of the previous trend. This formation suggests continuation potential above current levels.
The recent pullback may have reset support levels around $0.26, providing a foundation for renewed upward momentum. Historical patterns show ETF launches often generate initial volatility followed by sustained rallies.
Bitcoin’s ETF-driven surge in early 2024 provides a template for potential DOGE performance. The institutionalization of meme coins could attract new capital from traditional finance sectors.
Some analysts view the current decline as healthy consolidation before the ETF launch. Reduced leverage and cleared long positions may create better conditions for sustained price appreciation once trading begins.
