Dogecoin price continued its recent crash and moved below an important support level as sentiment in the industry worsened.
Summary
- Dogecoin price has crashed to a crucial support level.
- Grayscale will launch the spot DOGE ETF on Monday.
- The coin has moved to an important support level ahead of the launch.
Dogecoin (DOGE) token has crashed in the last four consecutive weeks and is now hovering at its lowest level since April this year. It has slumped by over 70% from its December high.
Dogecoin price will be in the spotlight this week as the market welcomes two DOGE ETFs. Grayscale will launch the GDOG ETF on Monday, while other companies like 21Shares will do the same in the coming weeks.
These ETF launches are notable as they will let American institutional and retail investors allocate money in the biggest meme coin in the industry.
However, there are signs that the ETFs will not attract substantial inflows. A good example of this is the REX-Osprey DOGE ETF, which launched in September using the Investment Company Act of 1940. Inflows into the fund have dried up, with its total assets being just $24 million.
Doecoin’s performance will likely mirror that of Litecoin (LTC), a similar proof-of-work token. Data shows that the Canary Litecoin ETF has attracted just $7 million in inflows.
DOGE price has not had any major bullish catalysts in the past few months, which is one reason it has continued its freefall. Its futures open interest has dropped to about $1.1 billion, its lowest level since November last year and much lower than the year-to-date high of $6 billion.
Dogecoin price technical analysis
The weekly chart shows that the DOGE price has been in a strong freefall in the past few months. It has dropped from a high of $0.3075 in September to the current $0.1423.
The current price is important because it has failed to move below it several times since March 10 this year. It is also along the 78.2% retracement level.
There are signs that it formed a triple-bottom pattern whose neckline is at $0.3075. This is one of the most common bullish reversal patterns in technical analysis.
Therefore, more downside below the triple-bottom point will point to more downside, potentially to the psychological point at $0.10, which is about 30% below the current level.
