- Dogecoin price dropped to a crucial support level and formed a doji candle.
- This performance means that the coin may rebound in the near term.
- DOGE ETFs have flopped, while its futures open interest has dropped.
Dogecoin price dropped to a crucial support level over the weekend as weakness in the crypto market persisted. DOGE fell to $0.097, its lowest level since April 27 this year, and 20% below its highest point this month.
Dogecoin Price on Edge at a Crucial Support
DOGE price has pulled back in the past few weeks, mirroring the performance of other top coins like Bitcoin and Ethereum. This retreat coincided with the rising demand for privacy tokens such as Zcash and Near, as well as AI tokens such as Bittensor (TAO), Worldcoin (WLD), and FET.
There are signs that Dogecoin’s demand has waned in the past few months. For example, demand for the spot DOGE ETFs continues to dwindle. These funds have attracted just $2.1 million in inflows this month, bringing the cumulative net inflows to $13 million. They currently hold DOGE tokens worth over $14.5 million.
In contrast, the newly launched HYPE ETFs have gathered over $90 million in assets, representing 0.68% of the token’s market capitalization. Other altcoin ETFs have also performed well; those tracking XRP have added more than $116 million in assets this month, while Solana ETFs have increased by $112 million during the same period.
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The same trend is evident in the futures market, where volume and open interest have declined over the past few months. Its volume retreated to over $237 million in the last 24 hours, while the futures volume fell to $1.64 billion.
The only hope for DOGE is that whales continue to purchase the token. Data compiled by Santiment indicates that whale accounts holding between 10 million and 100 million tokens have added nearly 500 million tokens since May 17. Whale buying is often viewed as a positive sign, as it suggests that these investors anticipate a price surge.
DOGE Price Settled at a Crucial Support
Another technical aspect is that the coin settled at an important support level that connected the lowest swings since February this year. It has always bounced back when it tested that trendline.
The coin also formed a doji candlestick pattern resembling a plus sign. It is a common bullish reversal sign in technical analysis.
Therefore, there is a likelihood that the coin will rebound in the coming days as long as it remains above the trendline. If this happens, the next key target to watch will be $0.1185, the highest level in May this year.
On the other hand, a drop below the ascending trendline will invalidate the bullish outlook and point to more downside in the near term.
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