Is Dogecoin about to rebound? Technical indicators suggest breakout potential, with Bitwise ETF fueling the momentum

Dogecoin (DOGE) shows positive technical signals with the entry of institutional investors. On Wednesday, Bitwise officially launched the Dogecoin ETF on the New York Stock Exchange (NYSE) under the ticker symbol BWOW. This move follows Grayscale and injects new liquidity expectations into the market.

Technical Breakthroughs Expected, Key Resistance Levels in Focus

As of the latest data, DOGE is trading at $0.13, down -0.55% in the past 24 hours. Despite short-term pressure, the support level around $0.142 over the weekend indicates that Dogecoin has initiated a rebound structure.

On the technical side, DOGE is testing a descending trendline resistance that has been suppressing prices since October 27. This resistance is located above the 20-day Exponential Moving Average (EMA) and has been the main obstacle to upward momentum over the past month. If DOGE successfully breaks above this trendline, it could test the $0.181 level, further supported by the 50-day EMA.

The Relative Strength Index (RSI) and Stochastic Oscillator are both hovering near neutral levels, indicating that the momentum shift is approaching a critical point. Once these indicators break into the neutral zone, they will signal a dominant bullish reversal.

New Narrative for Dogecoin Driven by Institutions

Bitwise Chief Investment Officer Hunter Horsley stated that Dogecoin has evolved into a “symbol of the crypto movement.” From an internet joke to becoming the tenth-largest crypto by market cap, Dogecoin’s 12-year development trajectory demonstrates extraordinary resilience.

The Grayscale Dogecoin ETF (GDOG) was launched first under the “33 framework,” with a trading volume of $1.4 million on its first day. Meanwhile, REX Osprey’s earlier launched Dogecoin ETF, due to structural differences, may not require direct holding of DOGE tokens. Both Bitwise and Grayscale’s products offer direct exposure, lowering the barrier to investor participation.

Bloomberg ETF analyst Eric Balchunas said that asset size is inversely proportional to the distance from Bitcoin, but Dogecoin’s appeal as an alternative asset is changing this traditional perception. Institutional entry is expected to bring new liquidity support to Dogecoin, further driving technical upward breakthroughs.