Dogecoin price crashed to an important support level as the crypto market plunged and as the recently launched DOGE ETFs experienced a lackluster demand from American investors. It dropped to the important support level at $0.1360, down by 56% from its highest level in September.
DOGE ETFs are Having Weak Demand
Dogecoin price has plunged in the past few weeks, even as the Securities and Exchange Commission (SEC) approved three exchange-traded funds tracking the token.
Data shows that these funds have not become popular among investors as their cumulative inflows stands at $2.16 million and the total assets moving to $6.29 million. Grayscale’s GDOG holds $3.8 million in assets, while Bitwise’s BWOW has $2.48 million in assets.
The REX-Osprey DOGE ETF, which is based on the Investment Company Act of 1940, has attracted less than $25 million in assets three months after launch.
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In contrast, the cumulative inflow of spot Solana ETFs has soared to $620 million, with the Bitwise fund having over $606 million in assets. All spot XRP ETFs have accumulated over $666 million in inflows.
Dogecoin ETFs are not attracting demand because the token is no longer as popular as it was a few years ago when Elon Musk was pumping it. Indeed, its daily trading volume and futures open interest has dropped sharply in the past few months.
Additionally, the Dogecoin price has struggled after the Trump administration confirmed that the Department of Government Efficiency (DOGE) had ceased operations. DOGE, which Elon Musk operated a few months ago, was tasked with reducing government wastage.
Dogecoin Price Technical Analysis
Dogecoin price chart | Source: TradingView
The daily timeframe chart shows that the DOGE price has crashed in the past few months, moving from a high of $0.3065, its highest level on September 13 to the current $0.1360
The current level is notable as it coincided with the lowest level on April 6. It is also slightly lower than the lowest level in July this year.
Dogecoin price has dropped below the 50-day and 100-day Exponential Moving Averages (EMA), a sign that bears remain in control. It has also moved below the Supertrend indicator, while the Relative Strength Index (RSI) has pointed downwards.
Therefore, the token will likely continue falling as it lacks a clear catalyst, especially now that DOGE ETFs have not become popular among investors. On the other hand, a move above the 100-day moving average at $0.1900 will invalidate the bearish outlook.
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