Dogecoin price continued its downward trend as headwinds in the crypto market rose and demand for its ETFs plunged. DOGE was trading at a crucial support level at $0.1265, down by nearly 60% from its highest point in September.
DOGE ETF Inflows Have Stalled
The main reason why the Dogecoin price has crashed recently is that sentiment in the crypto industry has waned. A closer look at the sector shows that Bitcoin and most altcoins have been in the red as the Fear and Greed Index remains in the fear zone.
DOGE price has also slumped as demand for its exchange-traded funds remained muted. Data shows that the Grayscale and Bitwise DOGE ETFs have had no inflows since December 11. The last date these funds had inflows was on December 10 when an investor bought ETFs worth $171k.
Therefore, these funds have brought in $2 million in inflows since their inception in November, and they now hold $5.2 million in assets, which is equivalent to 0.03% of the market capitalization.
Grayscale’s GDOG has $3.95 million in assets, while Bitwise’s BWOW has $1.25 million. Therefore, the implication of all this is that these companies may ultimately decide to shutter the funds in the future if they fail to attract enough assets.
GDOG has an expanse ratio of 0.35%, meaning that its annual revenue will be less than $14,000 if the assets remain this low. Similarly, BWOW will make Bitwise less than $5,000 a year, which is not much for a company with billions of dollars in assets
The ongoing DOGE ETF woes are a sharp contrast to the performance of other altcoin ETFs. For example, the recently launched XRP ETFs have accumulated over $1 billion in inflows, while Solana funds have gained $725 million in inflows.
Dogecoin Price Technical Analysis
The daily chart shows that the DOGE price sits at a crucial support level today. It has dropped to $0.1260, a level it has failed to move below several times since April 7 this year.
Dogecoin price has remained below the 50-day and 100-day Exponential Moving Averages (EMA), while the Awesome Oscillator has remained below the zero line since October 9.
Therefore, the most likely DOGE price forecast is bearish as buyers have remained in the sidelines. If this happens, the next key support level to watch will be at the psychological level at $0.10, which is about 20% below the current level.
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