Dogecoin Faces Bearish Pressure as Price Plummets
Dogecoin (DOGE) has entered a technical bear market, with its price dropping over 37% from its September peak. The token recently hit $0.1900, its lowest since October 12, and now has a market cap of $28 billion. This is a 60% decline from its yearly high.
The recent crash led to $365 million in liquidations, causing investors to stay on the sidelines.The REX-Osprey DOGE ETF (DOJE), launched recently, has seen stalled inflows. It holds about $31 million in assets, indicating strong demand despite the high 1.5% expense ratio.
Dogecoin’s funding rate has turned negative, signaling investor anticipation of further price drops. Futures open interest has also fallen from $6 billion in September to $1.92 billion, showing reduced investor activity.
A potential catalyst for DOGE could be the end of the government shutdown,leading to more ETF approvals. However, the technical analysis paints a bearish picture.
The DOGE price chart shows a bearish rising wedge pattern, with the token falling below the 50-day and 200-day exponential moving averages. A death cross may occur soon as the spread between these averages narrows. The Relative Strength Index is nearing oversold levels, and the Percentage Price oscillator is below zero. This suggests continued downward pressure, with sellers targeting the year-to-date low of $0.1515.
Key points:
- dogecoin price has fallen over 37% from its September high.
- Investors are on the sidelines, causing ETF inflows to stall.
- Funding rate and futures open interest have declined.
- technical indicators suggest further price drops.
