Key Points
The arrival of a Dogecoin ETF is official! The REX-Osprey DOJE fund is scheduled to begin trading on September 11th. Could this spark a broader resurgence for memecoins in the fourth quarter?
Earlier this week, crypto analysts examined the growing buzz around a potential Dogecoin [DOGE] ETF.
Now, the speculation is over. The REX-Osprey DOGE ETF, trading under the ticker DOJE, is officially launching.
According to a tweet by Bloomberg ETF expert Eric Balchunas, DOJE will start trading on September 11th. This fund doesn’t use leverage and marks the first U.S. ETF linked to an asset known for lacking intrinsic value.
This ETF launch arrives as Digital Asset Treasuries (DATs) focused on memecoins are gaining traction.
Can ETFs and DATs Fuel a Memecoin Surge?
Data analysis indicates growing excitement following the DOJE ETF announcement. Currently, the U.S. Securities and Exchange Commission (SEC) is considering over 30 other crypto ETF applications.
ETF applications for other meme-based coins, including TRUMP and PENGU, are also under consideration.
These new memecoin ETFs could usher in a new investment trend. Each new development has resulted in substantial buying activity from both retail investors and institutions.
DATs are also emerging as significant players in the memecoin space.
Source: Santiment
For example, CleanCore Solutions recently increased their DOGE holdings by 285 million, valued at $68 million, aiming for a billion DOGE in total within the next month. This would represent almost 5% of the total circulating supply.
These factors suggest a potential year-end rally for memecoins, consistent with historical trends.
DOGE Price Shows Upward Momentum
Currently, prices are exceeding key trendlines, indicating growing bullish sentiment leading into the fourth quarter.
According to a post by Trader Tardigrade, Dogecoin, considered the leading memecoin, has reached a new high since the lower high formed on July 27th.
Source: Trader Tardigrade/X
Ichimoku cloud indicators on the daily chart suggest the price is currently above both the baseline and the cloud. The trend score is 2, indicating a bullish outlook across short, medium, and long-term periods.
Potential for Significant Short Liquidations
Data indicates that around $45 million worth of DOGE short positions are at risk of liquidation around the $0.267 price level.
Recent developments increase this possibility, with the most significant concentration of short positions at $0.25, totaling over $1.5 million in volume.
Source: CoinGlass
Conversely, highly leveraged long positions (around 50x) are concentrated between $0.233 and $0.242. These accumulated orders, totaling approximately $36 million, have fueled the recent upward price movements in DOGE.
In conclusion, the excitement surrounding ETFs and DATs positions Dogecoin as a leading contender for a memecoin rally, especially with the fourth quarter approaching.