Dogecoin Faces Bearish Pressure as Price Falls
Dogecoin (DOGE) has entered a technical bear market, with it’s 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 still 60% below its yearly high.
Investors are cautious after recent market crashes led to $365 million in liquidations. the REX-Osprey DOGE ETF (DOJE), launched recently, has seen inflows slow down. It holds about $31 million in assets, showing strong demand despite the high 1.5% expense ratio.
Dogecoin’s funding rate has been negative for two days, indicating bearish sentiment. Futures open interest has also dropped from $6 billion in September to $1.92 billion. This suggests investors are staying on the sidelines.
A potential catalyst for DOGE could be the end of the government shutdown, which might lead to more ETF approvals.
Technically,DOGE has formed a bearish rising wedge pattern.It has fallen below the 50-day and 200-day exponential moving averages. The Relative Strength Index is near oversold levels, and the Percentage Price Oscillator is below zero. This suggests further price drops, possibly to the year-to-date low of $0.1515.
