NOIDA (CoinChapter.com) — Coinbase is planning to launch a Dogecoin Futures contract, helping the Dogecoin price rally on March 20, closing the day with nearly 19% gains. The rally was also fueled by the Federal Reserve’s dovish announcement.
DOGE prices spiked more than 22% since March 20 to reach a daily high near $0.157 on March 21. However, bears are pushing the token down. As such, the news coming from Coinbase would likely help the bulls counter the bearish pressure.
Coinbase To Launch Regulated Futures For Dogecoin
The derivatives arm of crypto exchange Coinbase, Coinbase Derivatives, has filed an application with the Commodity Futures Trading Commission (CFTC) to launch a new crypto futures fund for three altcoins, including DOGE.
Per Coinbase’s application, the Dogecoin futures contract would be based on the Market Vector Coinbase Dogecoin Benchmark Rate, which tracks the price of the meme coin on Coinbase.
Moreover, Coinbase stated in its letter to the CFTC that the Dogecoin Futures contract would be a “monthly cash-settled and margined contract” with a size of 5,000 DOGE tokens.
Dogecoin’s enduring popularity and the active community support suggest that it has transcended its origins as a meme to become a staple of the cryptocurrency world.
Coinbase wrote in its letter.
The crypto exchange plans to launch the Dogecoin futures trading service by April 1.
DOGE Price Responds, But Bearish Pressure Still High
Despite DOGE price’s spike during early trading, bears seem to be in control, forcing the token to pare March 21’s gains. The thin candle body and long upper wicks on both sides of the day’s price candle highlight the struggle between the bulls and the bears.
Bulls defend the 20-day EMA (red wave) dynamic resistance after flipping the trendline as a support level on March 20. However, if the profit booking increases, DOGE price risks a drop to the support level near $0.135.
Moreover, breaching the immediate support could see Dogecoin price test the support 0.236 FIB support level near $0.116 before recovering.
On the other hand, the Coinbase news might help attract buyers to the market, helping DOGE price rise to the resistance near $0.16. Moving above the $0.16 price level would infuse confidence in the memecoin’s rally, resulting in Dogecoin price likely targeting the 0.786 FIB resistance near $0.185.
The relative strength index for DOGE remained neutral, with a score of 53.36 on the daily charts.
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