Key Insights
- Dogecoin drops over 38% from September highs as bearish technical signals strengthen and broader market sentiment weakens.
- The REX-Osprey DOGE ETF shows stagnating inflows with assets at $32 million, trailing behind the stronger-performing XRP ETF.
- DOGE futures open interest plunges to $1.85 billion, signaling fading speculative interest and reduced short-term market activity.
Dogecoin has entered a local bear phase after dropping more than 38% from its September peak of $0.3066 to $0.1900. This decline mirrors the broader crypto market sell-off that triggered widespread liquidations across major digital assets. The correction also followed a rising wedge formation, a pattern often linked to bearish reversals as prices converge toward a breakout point.
The meme coin is on the verge of forming a death cross on the daily chart, where the 50-day Exponential Moving Average crosses below the 200-day average. This pattern, last observed in March, often signals extended downward pressure. Additionally, the token has fallen below critical technical levels, including the Murrey Math Lines support, the Supertrend indicator, and the Ichimoku cloud. These readings suggest growing selling momentum, with traders eyeing a possible retest of $0.1515. A sustained move above $0.2150 could, however, signal short-term relief.
ETF Inflows Slow as Investor Interest Fades
The REX-Osprey DOGE ETF, launched alongside its XRP counterpart, has shown weaker investor appetite. Data from the fund’s official site indicates assets under management at $32 million, far below the $100 million accumulated by the XRP ETF. Moreover, recent figures from ETF.com confirm the DOGE ETF has recorded no inflows over the past two trading sessions, suggesting investors remain cautious amid heightened market uncertainty.
Dogecoin’s futures market has also seen a notable contraction in activity. Open interest has dropped to $1.85 billion, marking the lowest level since June and a steep fall from its year-to-date peak of $6 billion. This contraction highlights a sharp decline in speculative positioning, underscoring reduced trader confidence.
Market Outlook
With technical indicators aligning on the bearish side and institutional demand weakening, Dogecoin’s short-term trajectory appears fragile. Unless buying interest returns above the $0.2150 resistance, the token may continue facing downward pressure through the coming weeks.
