Bitwise files for spot Dogecoin ETF, DOGE risks over 30% decline

• Bitwise joins the meme coin ETF list after filing a Dogecoin ETF. 
• The firm had previously filed for a Dogecoin Trust with Delaware last week, which hinted at a close-by ETF submission.
• DOGE could decline by 37% if it breaches a lower descending triangle boundary.

Dogecoin (DOGE) is down 4% following Bitwise's Dogecoin exchange-traded fund (ETF) filing with the Securities & Exchange Commission (SEC) on Tuesday. The top meme coin risks a 37% decline if it breaks a triangular channel's support level.

Dogecoin ETF gains momentum with Bitwise filings

Bitwise submitted an S-1 registration statement to the SEC on Tuesday for a Dogecoin spot ETF. This marks the second DOGE ETF filing with the regulator.

Bitwise's S-1 filing didn't come as a surprise, considering its Dogecoin Trust filing in Delaware last week. The new filing adds to the growing demand for meme coin ETFs following Donald Trump's inauguration as president of the US.

Prior to Bitwise's filing, REX Shares and Osprey filed a suite of ETF applications for meme coins like DOGE, BONK and Donald Trump's TRUMP last week.

"The reality is that there are a lot of people that want to invest in Dogecoin. It's the sixth-largest crypto asset in the world by market cap and it trades over $1bn a day," Bitwise CIO Matt Hougan told the Financial Times.

This attracted mixed feelings, considering the controversy that often accompanies the meme coin category.

However, due to the new presidential administration, the latest DOGE ETF is expected to pass through fewer hurdles to gain approval. 

Moreover, the recent launch of the US Department of Government Efficiency (D.O.G.E.), which features the Dogecoin logo, has also boosted investors' confidence in the potential approval of DOGE ETFs.

"There are plenty of questionable investments packaged into ETFs, but meme coins would take this to an entirely new level," said Nate Geraci, president of financial adviser The ETF Store.

In other news, Cboe BZX issued a new set of filings for Solana ETFs from firms including Bitwise, VanEck, 21Shares and Canary Capital. 

The exchange previously submitted the 19b-4 filings back in November but received no response from regulators on its approval.

The refiling suggests that the exchange is optimistic that the new SEC administration will approve the ETFs.

DOGE risks 37% decline if it breaches key support level

DOGE is trading within a descending triangle on the daily chart. The top meme coin is expanding its decline that began on January 22.

DOGE/USDT daily chart

If DOGE sustains a firm close below the triangle's lower boundary support level, it could decline about 37% to reach $0.1905. The level is obtained by measuring the triangle's height and projecting downward from the potential breakout point.

On the way down, DOGE could find support near the $0.2106 level.

The Relative Strength Index (RSI) and Moving Average Convergence Divergence (MACD) are below their neutral level, indicating dominant bearish pressure. The Stochastic Oscillator (Stoch) is in the oversold region, indicating DOGE may be due for a comeback.

A daily candlestick close above $0.4523 will invalidate the thesis.

 

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