Dogecoin gains 5% as Grayscale’s GDOG ETF sparks bullish momentum

Cryptocurrencies start the week on a bullish note as Bitcoin reclaimed $87K on Monday, recovering from Friday’s low of around $81.7K.

Amidst the optimism, Dogecoin stayed in the spotlight ahead of the Grayscale GDOG ETF launch on NYSE Arca.

The investment manager took it to X to confirm that its GXRP and Dogecoin exchange-traded funds will debut in less than 24 hours.

Meanwhile, GDOG has sparked interest across the cryptocurrency community as enthusiasts weigh the potential impact on Dogecoin, sentiment, and renewed interest in meme digital assets.

Adding to the optimism, Bloomberg’s ETF analyst Eric Balchunas confirmed the listing approval, while estimating GDOG’s day-one trading volume will hit $11 million.

That signals potential demand for a regulated exposure to the original meme cryptocurrency.

Thus, the meme token maintained a bullish stance today.

DOGE soared nearly 5% on its daily chart, outshining the broader market, which added only 1.1% the last 24 hours to $2.98 trillion.

Grayscale boosts Dogecoin exposure

First and foremost, Grayscale’s GDOG won’t be the first ETF linked to the meme assets in the United States.

Osprey Funds and REX Shares won authorization of their respective Dogecoin exchange-traded funds in September, fueled by the new SEC generic listing terms.

Now, Grayscale has joined the race.

The company has been expanding its product suite, and the GDOG ETF represents its latest move into single-asset offerings suitable for investors who prefer compliant investments.

Grayscale has confirmed that its new ETF “offers investors direct exposure to DOGE.”

That means retailers and institutions can tap into Dogecoin’s potential without holding or directly managing the asset.

Meanwhile, the product remains paramount in helping Dogecoin shed its meme image.  

The digital token has struggled to attract solid investments due to a lack of utility.

DOGE is now transitioning into a serious and regulated financial product.

Individuals who have been skeptical about interacting with the token on cryptocurrency exchanges can now tap into GDOG for a compliant-friendly entry.

DOGE price analysis

The meme token soared from $0.1421 to an intraday peak of $0.1489, a 4.786% increase, over the past 24 hours.

Meanwhile, Dogecoin has seen notable selling pressure since topping $0.32 early last month, in October.

Its current price is testing the vital $0.135 - $0.140 level.

This region often attracts substantial buying activity, and history might rhyme amidst triggers like the DOGE ETF debut, especially if it sees the forecasted demand.

Bullish actions will drive DOGE toward the next supply zone at $0.155 - $0.160.

Magnified trading volumes could propel the token past $0.172, then $0.19, and reclaim the crucial $0.2 support barrier.

Nevertheless, prevailing broader uncertainty could see Dogecoin underperforming in the near term.

Failure to stabilize beyond $0.135 can catalyze deeper slides to $0.118.