Dogecoin price has plummeted to a local bear market after falling by over 38% from its highest point in September, and an emerging risky pattern points to further downside.
Summary
- Dogecoin price is about to form a death cross pattern on the daily chart.
- The recently launched DOGE ETF has lost momentum in terms of inflows.
- DOGE futures open interest has crashed in the past few weeks.
Dogececoin price death cross pattern forms
Dogecoin (DOGE) price has crashed from the September high of $0.3066 to $0.1900 today. This performance happened because of the recent crypto market crash that led to substantial liquidations.
DOGE price also dropped after the token formed a rising wedge pattern, which is made up of two ascending and converging trendlines. It often leads to a bearish breakout, which occurs when the two lines near confluence.
Dogecoin is now about to form a death cross, which happens when the 50-day and 200-day Exponential Moving Averages cross. It will be the first time that the token has formed this cross since March.
DOGE price has also moved below the ultimate support of the Murrey Math Lines tool. It has also moved below the Supertrend indicator and the Ichimoku cloud.
Therefore, the token will likely continue falling as sellers target this month’s low of $0.1515. Such a move would point to a 20% plunge from the current level. On the flip side, a move above the strong pivot and reverse point at $0.2150 will invalidate the bearish outlook.
DOGE ETF inflows and futures open interest falls
Third-party data shows that the recently launched REX-Osprey DOGE ETF growth has stalled. According to its website, the DOGE ETF has accumulated $32 million in assets, much lower than the REX-Osprey XRP ETF, which has crossed the $100 million milestone. The two funds were started on the same day.
Data by ETF.com shows that the fund has not had any inflows in the past two trading days. That is likely because investors are staying on the sidelines as the Crypto Fear and Greed Index remains in the red.
Meanwhile, more data shows that Dogecoin’s futures open interest has plunged to $1.85 billion, the lowest level since June 25. It has moved from the year-to-date high of $6 billion, a sign that its demand is waning.
