Dogecoin gained 1% on Tuesday as buyers protected the $0.26 price level. The cryptocurrency recently reached nearly $0.29 due to speculation about possible ETF products. Traders are waiting for regulatory decisions about Dogecoin ETFs expected on Thursday.
Elon Musk’s increased focus on Tesla has affected Dogecoin markets. He purchased $1 billion worth of Tesla shares on Monday. This happened after Larry Ellison passed Musk in wealth because of an AI deal with NVIDIA.
Musk confirmed his commitment to Tesla during online conversations on Tuesday. Dogecoin derivatives markets showed less activity following this development. ETHNews trading data shows Dogecoin futures volume dropped 26% to $9.41 billion.
Open interest fell 3.85% to $5.35 billion, meaning over $200 million in positions closed. These declines came despite small price increases, showing traders are using less leverage. Some investors still expect ETF approvals while others reduce risk.
Dogecoin’s price stays neutral after moving down from recent highs near $0.29. The $0.26 level serves as support, with the $0.246 area providing backup protection. Falling below this could push prices toward $0.21.
The MACD indicator stays positive but shows weaker momentum. Returning to $0.29 would need strong buying above the $0.28 resistance level. Positive ETF news might push prices to $0.32, which would be a new high for the year.
Negative news could keep prices between $0.21 and $0.24, especially if the Federal Reserve’s decision creates uncertainty.
