Franklin Templeton applies to include Dogecoin crypto ETF, DOGE rebounds from three-year lows

DOGE is extremely oversold technically. Franklin Templeton applied to be included in the crypto ETF

DOGE has recently attracted a new round of attention from analysts and institutional investors because its monthly technical indicators have entered an unprecedented oversold range, and Franklin Templeton, one of the world's largest asset management companies, has also expressed interest in it.

RSI hits record low, analysts hint at potential reversal

Cryptocurrency analyst Ash Crypto pointed out that the Relative Strength Index (RSI) on the Dogecoin monthly chart has fallen into unprecedented oversold territory, even exceeding the depth at the bottom of the overall crypto market in 2022. RSI is a technical indicator that measures the extent of recent price changes and determines overbought or oversold conditions. This extreme RSI value usually occurs near market bottoms, and some market observers speculate that DOGE may be building an important bottom.

DOGE has recently fallen nearly 90% from its all-time high and once hit a three-year low near US$0.067. However, traders noted a moderate rebound in prices, rising 1.27% to $0.07036 in the past 24 hours. At the same time, DOGE's 24-hour trading volume reached $417.11 million, with a market value of $12.03 billion. If buying momentum continues and DOGE breaks through key resistance levels, many analysts expect the memo coin may test upper targets such as US$0.45. Recent price movements and oversold technical readings have fueled optimism about potential bullish reversals.

Institutional trends: Franklin Templeton proposes to expand the scope of ETF

A noteworthy latest development is that Franklin Templeton has filed an application with the U.S. Securities and Exchange Commission (SEC) to expand the investment scope of its Franklin Crypto Index ETF to include Dogecoin. Franklin Templeton is a leading global investment management company, managing trillions of dollars in assets and is known for its rich mutual fund and ETF products.

The proposed inclusion of DOGE in ETFs will transform it into a more diversified "crypto asset basket fund." This will allow institutional and retail investors to gain broader exposure to regulated digital assets through a single financial product. The ETF aims to track more types of cryptocurrencies to expand the existing product line. The move comes as traditional asset management companies are racing to launch and expand crypto investment products.

Franklin Templeton's application to the SEC marks another important step in the increasingly institutionalization of cryptocurrencies, and also highlights the market's growing confidence in Dogecoin's position in a diversified crypto investment portfolio.

Franklin Templeton is a US-based global investment management company that operates a variety of mutual funds and ETFs. Its Franklin Crypto Index ETF is an exchange-traded fund designed to provide diversified exposure to a basket of digital assets under a regulated framework. The ETF currently holds multiple cryptocurrencies (excluding DOGE) and plans to add dogcoin. The current status is that it has submitted an application to the SEC.

Market Outlook and Key Drivers

Overall market sentiment also shows growing optimism about DOGE, with the broader cryptocurrency market and Bitcoin showing signs of recovery. Market participants said that if prices can continue to buy above the US$0.07 support level and successfully break through the main resistance area, DOGE is expected to gain upward momentum. DOGE's future performance is now closely dependent on the SEC's final decision on the Franklin Templeton ETF proposal and continued support from buying at key prices.

Asset managers and dogcoin supporters are closely monitoring subsequent regulatory developments that may affect the currency's prospects for being included in regulated investment products. The future trend of Dogecoin will depend on the resilience of buying support at key prices and how regulators respond to the Franklin Templeton ETF application.