NOIDA (CoinChapter.com) — Coinbase is planning to launch a Dogecoin futures contract, helping the price of Dogecoin rise on March 20, ending the day up nearly 19%. The rally was fueled by dovish announcements from the Federal Reserve.
DOGE price has surged more than 22% since March 20, reaching a daily high near $0.157 on March 21. However, bears are driving the token price down. Therefore, news coming out of Coinbase will help bulls counter bearish pressure.
Coinbase Launches Regulated Futures for Dogecoin
Coinbase Derivatives, the derivatives arm of cryptocurrency exchange Coinbase, has submitted an application to the Commodity Futures Trading Commission (CFTC) to launch a new cryptocurrency futures fund for three altcoins, including DOGE.
According to Coinbase’s application, the Dogecoin futures contract is based on the Market Vector Coinbase Dogecoin Benchmark Rate, which tracks the price of Coinbase’s meme coin.
Moreover, Coinbase stated in its letter to the CFTC that the Dogecoin futures contract “Monthly cash settlement and margin contractt” is the size of 5,000 DOGE tokens.
Dogecoin’s continued popularity and active community support suggest that it has moved beyond its origins as a meme and has become a staple of the cryptocurrency world.
Coinbase wrote in the letter:
The cryptocurrency exchange plans to launch Dogecoin futures trading services by April 1.
DOGE Price Reacts But Bearish Pressure Still High
Despite the DOGE price surge during early trading, the downtrend is under control, causing the token to pare its gains on March 21st. The thin candle bodies and long upper wicks on either side of the day’s price candle emphasize the struggle between bulls and bears.
Bulls defend the 20-day EMA (red wave) dynamic resistance after flipping the trendline as a support level on March 20th. However, if profit booking increases, DOGE price risks falling to the support level near $0.135.
Moreover, a violation of immediate support could see Dogecoin price test the 0.236 FIB support level near $0.116 before recovering.
On the other hand, the Coinbase news could help attract buyers into the market and help push DOGE price up towards resistance near $0.16. A move above the $0.16 price level will heighten confidence in a rally in memecoin, with Dogecoin price likely targeting the 0.786 FIB resistance near $0.185.
DOGE’s Relative Strength Index remained neutral at 53.36 on the daily chart.
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