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Dogecoin price could be about to explode higher after forming an inverse head-and-shoulders pattern and as the crypto market bull run continues.
- Dogecoin price has formed an inverse head-and-shoulders pattern.
- It has moved into the third phase of Elliot Wave pattern.
- $DOGE ETF and corporate treasuries will boost its price.
Dogecoin ($DOGE) token was trading at $0.2400, down by 3.47% from its highest level this week. It remains about 27% above the lowest level this month.
Dogecoin price technical analysis
The four-hour chart shows that $DOGE price bottomed at $0.1890 on August 4 and then rebounded to a high of $0.2485.
A closer look shows that the coin has formed an inverse head-and-shoulders pattern. This pattern’s head is at $0.1890, while the two shoulders are at $0.2200.
This pattern’s neckline is at $0.2486, meaning that the pattern’s height is about 24%. Measuring this distance from the neckline gives a target of $0.3058, up about 25% from the current level.
The chart also shows that $DOGE price has moved into the third phase of the Elliott Wave pattern. It has already completed the first phase, which was formed between August 2 and August 9. The second phase was completed on August 12.
Therefore, moving above $0.2488 will invalidate the double-top pattern and confirm the Elliott Wave count. The third phase will likely push it to the inverse head-and-shoulders target at $0.2877.
$DOGE ETF could lead to more inflows
A key catalyst for $DOGE price is the potential launch of Dogecoin exchange-traded funds by companies like Bitwise, Grayscale, 21Shares, and Rex Shares.
Recent data shows substantial demand for cryptocurrency ETFs. For example, the iShares Bitcoin Trust is nearing $90 billion in assets, while all Ethereum ETFs have had over $11 billion in inflows.
Polymarket data shows that participants have a 61% chance that the SEC will approve these funds.
Meanwhile, the weighted funding rate has remained in the green since July 6, a sign that investors anticipate the future price to be higher than it is today.
Dogecoin futures open interest rose to $3.39 billion from this month’s low of $3 billion. Rising open interest is bullish for a coin because it indicates higher demand in the futures market.
Another catalyst is that more companies could start adding $DOGE into their balance sheets. Bit Origin is raising $500 million to buy $DOGE. Other companies with it in their treasuries are C2 Blockchain, Heritage Distilling, Spirit Blockchain, and Neptune Digital Assets.