During Friday’s U.S. market session, the crypto market experienced low volatility as Bitcoin price struggles to surpass All-time high resistance of $108,000. While the overhead supply has stalled recovery momentum in most major altcoins, the Dogecoin price shows recovery potential amid the recently launched Dogecoin Trust by Grayscale Investments.
Key Highlights:
- On Friday, Grayscale Investments announced the creation and launch of the Grayscale Dogecoin Trust with a management fee of 2.5%
- Dogecoin price fake breakdown from the triangle pattern support hints at a quick rebound to $0.4.
- Over the past three months, the 100-day exponential moving average has acted as key pullback support, indicating the broader market trend is bullish.
Grayscale Introduces DOGE Trust Fund
On January 31st, Friday, the crypto asset management firm Grayscale Investment announced the creation and launch of Grayscale Dogecoin Trust.
This Trust Fund offers investors exposure to DOGE, the native cryptocurrency of the Dogecoin network, with a management fee of 2.5%. Grayscale believes this Dog-themed memecoin has evolved into a global financial inclusion, grassroots activism, and a viable means of payment.
“Dogecoin has matured into a potentially powerful tool for promoting financial accessibility. We believe, as a faster, cheaper, and more scalable derivative of Bitcoin, Dogecoin is helping groups underserved by legacy financial infrastructure to participate in the financial system,” said Grayscale’s Head of Product & Research, Rayhaneh Sharif-Askary. “Grayscale Dogecoin Trust offers investors exposure to an asset that is positioned to help fulfill Bitcoin’s originally intended use case and its egalitarian ethos.”
This Trust could serve as a gateway for institutional investors to enter the DOGE market in a regulated manner, adding legitimacy to the asset and bolstering long-term value.
Donald Trump’s crypto-friendly administration is likely bolstering the emergence of such crypto-related products for DOGE and other digital assets.
Bear Traps Sets Dogecoin Price Rally Past $0.4
In the last two weeks, the Dogecoin price showed the formation of a new lower high at $0.43 with a downturn to $0.3— a 29% decrease. The day chart analysis shows the downfall gave a bearish breakdown from the symmetrical triangle pattern, teasing a potential for further correction.
However, with broader market recovery and the Launch of Grayscale Dogecoin Trust, the coin price has managed to regain position above $0.34. If the upswing breached the 20-and-50-day EMA resistance at $0.348, the recent breakdown would be marked as a ‘Bear Trap.’
The post-breakout rally could push the price by 18% up and challenge the next resistance at $0.4, followed by $0.48.
Also Read: Purpose Investment Files Prospectus for Ripple (XRP) ETF in Canada
