Dogecoin's Price Prediction Drops to 13% as SEC Considers ETFs

Polymarket’s prediction market indicates a mere 13% chance that Dogecoin will surpass $0.24 within the next 24 hours. This prediction has been steadily declining since its inception on May 10, dropping from a high of 65% a few days ago. Currently, Dogecoin is trading at $0.2265, slightly above the target price, but the odds suggest it may not reach the $0.24 mark by the deadline.

Despite the bearish sentiment from Polymarket, Dogecoin has shown significant network activity in recent days. Two days ago, the number of active Dogecoin addresses surged by over 500%, rising from approximately 74,600 to 469,400. This increase in activity coincides with a 41.12% rise in large transaction volumes, indicating heightened interest from major investors.

One of the key drivers behind the recent developments is the Securities and Exchange Commission's acknowledgment of multiple Dogecoin ETF applications, including one from 21Shares. While approval is not guaranteed, the consideration of these ETFs has boosted investor confidence in Dogecoin's legitimacy and future prospects. This is not an isolated event, as other firms such as Bitwise Asset Management, Grayscale, and Rex Shares have also filed for Dogecoin ETFs in recent months.

Technical indicators also play a role in the current market sentiment. The Relative Strength Index (RSI) for Dogecoin is approximately 63, nearing the overbought threshold of 70. This suggests that if buying pressure diminishes, a price correction could occur. However, the combination of increased network activity, institutional interest, and the potential for ETF approval could create a bullish backdrop for Dogecoin.

While the future of Dogecoin remains uncertain, the recent developments indicate a growing interest and potential for the cryptocurrency. Investors should approach with caution, considering both the technical indicators and the broader market sentiment. The acknowledgment of ETF applications by the SEC and the surge in network activity are positive signs, but the prediction market's low odds for reaching $0.24 suggest a more conservative outlook in the immediate future.