Corporate adoption of ETFs indicates Dogecoin’s move from meme to mainstream status

Dogecoin (DOGE) has recently triggered a noteworthy market temperature signal, with its combined 40/30/30 indicator surpassing a crucial level after several months. This indicator, which consolidates valuation, network activity, and profitability data, signals a potential shift in market sentiment as the 7-line indicator points upwards, capturing the attention of traders and market watchers alike.

The temperature reading, derived from a weighted calculation (MVRV Z-Score at 40%, RVT at 30%, and NUPL at 30%), has begun a steady ascent following a period of stagnation. Historically, elevated values have corresponded with overbought markets and previous price peaks, while lower values have been associated with oversold periods and accumulation phases. The recent increase breaks a prolonged period of dormancy that began in late 2024, leading to speculation about a potential broader market reversal.

Past trends add further weight to the current signal’s significance. In both the 2018 and 2021 bullish markets, sharp rises in the temperature metric coincided with price surges before subsiding. While the current uptrend is less pronounced than those seen in previous peaks, it mirrors the pattern often observed preceding recovery cycles. For instance, the temperature’s gradual climb above zero in 2014 preceded an extended bull run, with a similar pattern unfolding in 2018.

Experts emphasize that the metric’s holistic approach—incorporating valuation, network utilization, and profit/loss data—makes it a dependable indicator for identifying major market shifts rather than short-term fluctuations.

The emergence of this signal coincides with a surge in institutional involvement with Dogecoin. A recent development on November 20, 2025, saw 21Shares and the House of Doge introduce the 21Shares 2x Long Dogecoin ETF (TXXD), providing leveraged exposure to Dogecoin through a regulated exchange-traded product. Being the first offering of its kind in the U.S., this development underscores Dogecoin’s progression from a meme coin to an asset backed by institutions. With a 1.89% management fee and a listing on NASDAQ, the ETF is expected to appeal to a broader spectrum of investors, potentially bolstering liquidity and price volatility.

Market participants are now monitoring whether the temperature’s upswing will herald a sustained bullish phase or merely a temporary spike. Given that the metric relies on stable historical data (from the sixth data point to mitigate early anomalies), its signals are designed for long-term market analysis. Nevertheless, the current landscape—marked by economic uncertainty and regulatory challenges in the crypto sector—adds complexity to interpretation.

Although the 40/30/30 indicator does not directly predict price movements, it provides valuable context for strategic decision-making. According to one expert, “The temperature metric isn’t a crystal ball, but it does offer guidance. If this upward trend mirrors past rebounds, we could see a heightened appetite for assets with strong community support, like Dogecoin.”