Dogecoin price has plunged into a technical bear market after falling by over 37% from its highest point in September.
Summary
- Dogecoin price is about to form a death cross pattern.
- Inflows into the DOGE ETF have stalled as investors remain in the sidelines.
- The futures open interest and the funding rate has moved downside.
Dogecoin (DOGE) token dropped to $0.1900, its lowest point since Oct. 12, giving it a market capitalization of over $28 billion. It remains 60% below the highest level this year.
DOGE price has plunged as investors come to terms with the recent crash that led to $365 million worth of liquidations. As a result, investors have remained on the sidelines.
For example, the recently-launched REX-Osprey DOGE ETF (DOJE) inflows have slowed in the past few days. It now holds about $31 million in assets, where it has remained this week. This amount is still a sign of strong demand for an ETF with a 1.5% expense ratio.
Dogecoin price has also come under pressure as its funding rate drops. It has remained in the negative zone for the past two days, a sign that investors anticipate that the price will remain in the red for a while.
DOGE price has also moved lower as the futures open interest has plunged, moving from a high of $6 billion in September to $1.92 billion. Falling open interest is a sign that investors are staying on the sidelines as the crypto market remains on edge.
The most likely catalyst for the Dogecoin price is that the government shutdown could end soon and lead to more DOGE ETF approvals.
Dogecoin price technical analysis
The daily time frame chart shows that the DOGE price has crashed in the past few days. This crash happened as it formed a highly bearish rising wedge pattern. A wedge is made up of two ascending and converging trendlines.
Dogecoin price has moved below the 50-day and 200-day exponential moving averages. The spread between the two averages is narrowing, meaning that a death cross may happen soon.
The Relative Strength Index has moved below the neutral point at 50 and is nearing the oversold level. Also, the Percentage Price Oscillator has moved below the zero line.
Therefore, the token will likely continue falling as sellers target the year-to-date low of $0.1515. A move below that level will point to more downside in the near term.
