Despite its reputation as a joke token, Dogecoin remains the eighth-biggest cryptocurrency by market value, currently valued at $26 billion.

A closely followed crypto analyst has identified one catalyst that could send DOGE to the moon.

In a new strategy session, crypto trader Ali Martinez tells his 136,400 followers on the X social media platform that the original meme coin is nearing a setup that could trigger a 300% surge, but one condition must first be met.

Dogecoin Setting Up For Massive 300% Rally?

In his recent post, Ali Martinez suggested keeping an eye on the $0.20 mark. With palpable momentum building in the markets, Martinez believes that Dogecoin closing above the $0.20 mark this month would indicate it has broken out of a resistance zone that has been hindering its parabolic rally since early last year. 

Clearing this level may serve as a precursor to a move higher, with the pundit predicting the world’s largest and oldest meme coin could potentially rally back toward its current lifetime peak of around $0.74.
 

“Such a breakout would signal strong bullish momentum and potentially attract increased investor interest,” Martinez added.

Dogecoin ETF Incoming?

As ZyCrypto reported previously, faint hopes of Dogecoin being included in the U.S. Department of Government Efficiency (D.O.G.E.) were recently dashed as the department’s figurehead, Elon Musk, squashed any plans of adding the leading memecoin.

Nonetheless, the Dogecoin community is closely watching the US Securities and Exchange Commission as it reviews multiple DOGE-related applications. Dogecoin ETF filings from Bitwise, Grayscale, 21Shares, and Osprey Funds are already on the SEC’s desk. The regulator is set to make a decision on Grayscale’s ETF application on May 21 after recently delaying taking the next steps for several proposals.

Bloomberg Senior ETF analyst Eric Balchunas previously said the odds of a spot DOGE ETF going live in the coming months are as high as 75%. An ETF approval would provide a regulated investment vehicle for traditional investors, potentially boosting Dogecoin’s exposure and validation in the wider financial world. Increased demand could push up DOGE prices if the product captures even a small fraction of the inflows seen by the spot Bitcoin ETFs.