Dogecoin price forms scary patterns as DOGE ETF drought continues
Dogecoin price continued its recent downward trend, reaching its lowest level since Oct. 10, and its technicals points to more downside as the DOGE ETF drought continued.
- Dogecoin price has formed numerous bearish chart patterns.
- It formed a head-and-shoulders chart pattern on the three-day chart.
- Demand for the DOGE ETF has largely dried in the past few months.
Dogecoin (DOGE) token was trading at $0.1227, down by 75% from its highest point this year. This crash has led to a multi-billion-dollar wipeout.
The token has crashed as signs of weak demand continued. Data compiled by SoSoValue data shows that the Grayscale and Bitwise DOGE ETFs have not added any inflows since Dec. 11. These funds have had $2 million in inflows and $5 million in net assets.
Meanwhile, Dogecoin’s futures open interest has dropped to over $1.4 billion, down from the year-to-date high of over $6 billion. Falling open interest is a sign that investors are not buying the token.
Dogecoin price technicals points to a crash
The three-day chart shows that the the DOGE price has been in a strong downward trend in the past few months. It has formed several bearish patterns, meaning that it may continue falling over time.
For example, the coin has formed a death cross pattern as the 50-day and 200-day Exponential Moving Averages crossed each other. This pattern, which formed on Dec. 9, often leads to more downside.
Dogecoin price has formed a head-and-shoulders pattern, which is another high-risk sign. The head is at $0.4855, while the left shoulder is at $0.2285, and the right one was at $0.30. It has now moved below the neckline, confirming more downside.
The Relative Strength Index and the MACD indicators have continued falling. Therefore, the token will continue falling as sellers target the next key support at $0.080, its lowest level on August last year. This price is about 35% below the current level.
On the flip side, a move above the psychological point at $0.15 will invalidate the bearish outlook.
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