Dogecoin and SUI Rally as 21Shares Files for Leveraged ETFs

• On Friday, 21Shares submitted filings for multiple ETFs, including an active crypto ETF, a 2x long Dogecoin ETF, and a 2x long SUI ETF.
• Dogecoin price is nearing a major breakout from the inverted head and shoulders pattern.
• Flag pattern formation set SUI price for a potential surge towards $5.

On Friday, August 23rd, the crypto market witnessed a significant inflow as Federal Reserve Chair Jerome Powell offered a cautious signal that interest rate cuts could be on the horizon. His statement renewed optimism in crypto investors and pushed Bitcoin above the $115,000 mark. Top altcoins, including Dogecoin and SUI, followed the bullish momentum with a higher pace as crypto ETF issuer 21Shares submitted a filing to launch their leveraged ETF funds.

Dogecoin Whale Activity Bullish Rebound

On Friday, Federal Reserve Chair Jerome Powell struck a cautious tone at the Fed’s annual gathering in Jackson Hole, Wyoming, hinting at possible interest rate cuts ahead. While warnings of growing uncertainties complicate the outlook for U.S. monetary policy, Powell’s remarks were enough to boost investors’ sentiment in the crypto market.

According to CoinGecko, the global cryptocurrency market cap surged to $4.12 trillion, registering a 5.8% jump since yesterday. The bullish momentum boosted a majority of crypto coins, including Dogecoin and SUI, to renew their prevailing recovery.

However, the aforementioned altcoins gained additional traction as the crypto ETP investing platform, 21Shares, submitted filings for multiple crypto-linked exchange-traded funds (ETFs), including an active crypto ETF, a 2x long Dogecoin ETF, and a 2x long SUI ETF.

Unlike the existing spot ETFs that passively track the price of a particular cryptocurrency, the active crypto ETF allows portfolio managers to take a more hands-on role in selective weighting and rotation between the assets in response to market conditions. 

This means the manager may allocate capital across multiple tokens such as Bitcoin, Ethereum, Solana, Dogecoin, SUI, etc. Bloomberg ETF analyst Eric Blachinas suggests that the U.S. Securities and Exchange Commission could receive similar filings within the next year.

Meanwhile, the 21Shares 2x Long Dogecoin ETF is a leveraged product designed to provide two times the daily exposure to this dog-themed memecoin. Similarly, the 21Shares 2x Long SUI is also a similar 2x leveraged vehicle tied to the performance of the SUI price.

If approved, these ETFs would draw institutional inflows to these two cryptocurrencies, elevating their visibility, liquidity, and mainstream adoption.

Dogecoin Price Eyes Bullish Reversal Amid Inverted Head and Shoulders Pattern

In the last three days, the Dogecoin price has shown a bullish bounce from $0.207 to the current trading price of $0.24, accounting for 15% growth. The 4-hour chart analysis of this upswing shows a potential formation of a traditional reversal pattern called an inverted head-and-shoulder. 

The chart setup is characterized by three troughs, with the middle one (the “head”) being the deepest, flanked by two shallower troughs (the “shoulders”) on either side.

DOGE/USDT – 1d Chart

With today’s jump, the coin price is just 8% short of challenging the pattern’s neckline resistance at $0.25. A potential breakout from this resistance will accelerate the bullish momentum and set the price for an additional 23.7% jump to hit $0.318.

SUI Price Poised for Breakout From Flag Pattern Formation

Over the past three weeks, the SUI price showed a brief correction from $4.4 to a recent low of $3.26, accounting for a 26.5% loss. In the daily chart, a continued formation of this swing revealed a developing bull flag pattern.

The chart setup is commonly spotted within an established uptrend, as it allows buyers to recoup the exhausted bullish momentum. With today’s jump, the SUI price trades at $3.7, standing just 6% short of the overhead resistance trend at $3.9.

SUI/USDT – 1d Chart

If the buyers flip this resistance into a potential support, the post-breakup rally could chase the $5 psychological level, accounting for a potential 30% surge.

Also Read: Bitcoin Price Faces $110K Breakdown as Fed Rate Cut Odds Drop to 73%