On the first trading day of the brand new Dogecoin exchange-traded funds (ETFs), enthusiasm was high. However, that positive sentiment has quickly vanished. The inflow into the DOGE ETFs from Bitwise and Grayscale was a rather disappointing $2.16 million.
Another major blow is the current crypto market crash. Dogecoin fell by 7.5 percent in the last 24 hours. Multiple factors triggered a selling wave, including the weak state of the broader crypto market.
Disappointing ETF Inflows #
Investors had high expectations for the DOGE ETFs. However, the inflow of just $2.16 million is raising eyebrows. There seems to be very little interest from major financial institutions in the memecoin. The price is also struggling to gain traction. Over the past 30 days, Dogecoin has fallen by over 26 percent:
The disappointing ETF results are not the only factor weighing on Dogecoin. The DOGE price is currently facing direct resistance at $0.1383 and is struggling to break through it. The fact that memecoins are currently extremely volatile also plays a role. This means prices often fall sharply or break out when crypto traders jump in en masse.
Negative Sentiment in the Crypto Market #
However, there is no question of mass buying at the moment, as liquidity has deteriorated. There is less money and active trading in the crypto market because investors are cautious and fearful. The ‘Crypto Fear and Greed Index’ symbolizes this, as it currently stands at ‘Extreme Fear’. This means investors are less willing to jump into crypto:
Since October, $0.1495 had acted as a strong support zone for DOGE, but that has now come to an end. This level has been broken, marking the beginning of a downtrend.
Various indicators confirm the negativity in the market. For instance, the selling volume shot up extremely. A peak volume of 1.56 billion tokens—650 percent above the average—sent a shockwave through DOGE buyers.
Can the DOGE Price Still Recover? #
Other important indicators are ‘overbought’ or ‘oversold’. These technical indicators show whether a cryptocurrency has been bought or sold too much. Dogecoin is currently considered ‘oversold’, but there are no signals of a reversing trend yet. The DOGE price remains below the support of $0.1495. Every time the price moves towards $0.1383, it runs into a wall of resistance.
Only if the price clearly reclaims the aforementioned levels with more trading volume is a recovery possible. It is very important to win back the $0.1495 level. Until then, the bulls are not showing up.
There is a negative trend, but Dogecoin is still the largest memecoin in the world. Moreover, various cryptocurrencies have made a comeback in the past, so there is always hope.