Dogecoin (DOGE) is holding steady near the $0.21 support zone, despite experiencing a mild pullback from its recent high of $0.25.

The current Dogecoin price reflects a market that remains cautious but optimistic, particularly after a surge in futures activity earlier this week.

According to data from CoinGlass, Dogecoin’s open interest recently crossed $3 billion, signaling renewed trader confidence. Roughly 14.4 billion DOGE tokens were committed into derivatives positions in a single day, aligning with a $3.41 billion open interest peak. This influx suggests that large amounts of DOGE are locked in unsettled contracts, a dynamic that often points to rising speculative interest.

Rising Interest Amid Market Volatility

Short-term traders pushed Dogecoin to $0.25, delivering a one-day gain of over 4%. The Dogecoin market cap also saw a nearly 4% increase, reinforcing its position as the largest meme coin by value. However, analysts warn that while increasing open interest often indicates bullish inflows, stagnant trading volumes could make the move fragile.

Dogecoin appears to be forming a bullish flag on the hourly chart, targeting $0.27. Source: Ali Martinez via X

Crypto analyst Ali Martinez noted on X that Dogecoin is currently forming a bullish flag on lower timeframes, setting a potential price target of $0.27. Still, he emphasized the need for stronger trading volume to confirm the pattern.

“Rising open interest is positive, but if volume doesn’t follow, corrections can be sharp,” one derivatives strategist told CryptoRank News. “This is especially true for meme tokens like Dogecoin, which tend to track Bitcoin’s larger moves.”

Grayscale’s ETF Push Sparks Fresh Optimism

Beyond futures activity, one of the most significant developments in Dogecoin news today is Grayscale’s application for a Dogecoin ETF. The asset manager filed to convert its existing Grayscale Dogecoin Trust into a spot ETF listed on NYSE Arca, with Coinbase as custodian and BNY Mellon as administrator.

Grayscale files S-1 to launch a spot Dogecoin ETF, moving $DOGE closer to mainstream adoption. Source: JOCORAMA via X

If approved, Dogecoin would become the first meme cryptocurrency to secure a U.S.-listed exchange-traded fund. Market watchers say such approval could legitimize meme coins and open doors for broader institutional participation.

The proposal also signals a potential turning point for meme coins in general. If Dogecoin successfully enters the ETF market, other tokens with large communities, such as Shiba Inu and Bonk, could benefit from a ripple effect in investor interest.

ETF Approval Could Transform Dogecoin’s Value

The introduction of a Dogecoin ETF could attract new categories of investors, including advisors and funds that are restricted from directly holding crypto. This could significantly impact Dogecoin’s value, given its status as one of the most recognizable meme cryptocurrencies globally.

Dogecoin is wrapping up consolidation and gearing up for a potential breakout pump. Source: @TATrader_Alan via X

ETF products have already reshaped the markets for Bitcoin and Ethereum, triggering strong inflows and higher price volatility. Many expect a similar outcome if Dogecoin receives the green light.

What Traders Should Watch Short-term, traders will be watching if the Dogecoin price chart can maintain above $0.21 and then rebound to $0.25 and beyond. Open interest and funding rates will remain key metrics, showing if long positions are being maintained.

The broader crypto market, which is controlled by Bitcoin, will also play a significant role in the direction of Dogecoin. In case the sentiment remains upbeat and ETF news continues to drive speculation, a breakout towards $0.27 is possible. However, in case the volumes decrease or there are mass liquidations, Dogecoin can retest lower levels.

Dogecoin Price Prediction: Can DOGE Break Higher?

The Dogecoin price prediction for the short term hinges on two factors: derivative flows and regulatory decisions. A successful ETF approval could fundamentally change the future of Dogecoin, drawing institutional inflows and boosting demand. On the other hand, weak trading activity could leave the token vulnerable to sharper corrections.

Dogecoin was trading at around $0.22, down -3.64% in the last 24 hours at press time. Source: Brave New Coin

For now, Dogecoin holds its $0.21 support, and optimism remains alive. As ETF speculation grows, the question for traders and investors alike is clear: will Dogecoin go up enough to reclaim its bullish momentum—or is another pullback ahead?