Dogecoin (DOGE) is showing signs of a potential recovery after reaching an extremely oversold technical level, with analysts suggesting selling pressure may be fading. Market sentiment has also improved after Franklin Templeton proposed adding DOGE to its crypto index ETF, highlighting growing institutional interest in the memecoin.
At the time of writing, DOGE is trading at $0.07036 with a 24-hour trading volume of $417.11 million and a market capitalization of $12.03 billion. Following the 1.27% gain over the last 24 hours, the DOGE price structure and ETF filing point to a bullish reversal ahead.
Source: CoinMarketCap
Also Read: Dogecoin Price Eyes $0.15 After Holding Crucial $0.07 Support
DOGE Oversold Signal Hints at Major Rebound
According to the crypto analyst Ash Crypto, Dogecoin (DOGE) has reached its most oversold level ever on the monthly Relative Strength Index (RSI), according to technical analysts.
The memecoin has dropped nearly 90% from its all-time high and recently touched a three-year low near $0.067. Such extreme RSI readings historically have appeared near major market bottoms, signaling that prolonged selling pressure may be nearing exhaustion.
Source: Ash Crypto’s X Post
RSI levels for the month just concluded are more entrenched in the oversold zone compared to the crypto market’s bottom in 2022, giving rise to speculations that DOGE is now forming a solid base.
If the buying sentiment resurfaces and breaks through significant resistance levels, the bulls will be able to gain momentum, possibly pushing Dogecoin to reach $0.45.
Franklin Templeton Seeks Dogecoin ETF Expansion
The data from dogegod further highlighted that Franklin Templeton has made an application with the SEC in the United States to expand the scope of the Franklin Crypto Index ETF to include Dogecoin (DOGE).
The approval will make it a diversified cryptocurrency basket fund that allows investors to invest in a wide variety of cryptocurrencies through one regulated financial instrument.
The filing comes at a time when there is increasing confidence from the heavyweights in the Dogecoin ecosystem as major asset management companies expand their cryptocurrency offerings.
The addition of DOGE will bring more diversification to the fund as compared to its current offerings. It also highlights the increased level of competition in this space.
Following the bullish price predictions and ETF inclusion, the DOGE price is moving in an upward direction. This move is also backed by the general trend in the crypto market as the BTC price has started to move upward.
What Happens Next for Dogecoin?
The success of Dogecoin is going to depend on two aspects: one is for the buyers to be able to hold above the support level and break the resistance levels, implying that there is a better chance of an upturn moving forward.
The other aspect is for investors to take note of what the SEC will say about the inclusion of DOGE in the Crypto Index ETF of Franklin Templeton.
Also Read: Dogecoin Breakout Setup Strengthens as Whale Activity Sparks Optimism
This article contains market analysis and price predictions. These are not guarantees. Crypto markets are volatile. Always DYOR. Not financial advice.
