Dogecoin, Uneasy Even with ETF Funds Returning... Will $0.1 Collapse?

▲ Dogecoin (DOGE)

Despite the positive news of renewed ETF fund inflows, Dogecoin (DOGE) cannot avoid a bearish warning on short-term charts. Although there are signs of revived institutional demand, a rising wedge pattern and weakened technical indicators have made the defense of the $0.10 support level a key market variable.

According to crypto media outlet Coingape on May 7 (local time), Dogecoin fell 4.62% to $0.11 that day. Despite the price weakness, institutional funds flowed back into Dogecoin ETFs. Coingape reported that Dogecoin ETFs, launched last year, marked the first instance of a memecoin entering Wall Street, but they have not created as steady a flow as Bitcoin (BTC) and Ethereum (ETH) ETFs.

Dogecoin ETFs saw no fund flow from April 28 to May 4. At the time, Dogecoin's price showed a relatively favorable trend, and some analysts expected a rise, but ETF buying did not follow. However, on May 5 and 6, fund inflows resumed, exceeding $600,000. Coingape explained that this shows ETF demand remains high even with the price stagnation.

The problem lies in the charts. Coingape analyzed that Dogecoin formed a rising wedge pattern on the 4-hour chart. A rising wedge is typically interpreted as a warning signal that selling pressure may strengthen its dominance. According to the article, if Dogecoin breaks below the lower trendline, the price could drop to $0.103, and such a move could put pressure on maintaining the $0.10 support level.

Technical indicators also point to selling dominance. Coingape reported that both the Chaikin Money Flow (CMF) and Relative Strength Index (RSI) are declining, creating an environment where selling pressure can easily seize control from buying pressure. The 4% drop in Dogecoin's price that day also added to the short-term bearish outlook.

However, Dogecoin tends to strongly follow Bitcoin's trend. Coingape reported that since Bitcoin has reached $82,000, if Bitcoin's upward trend continues, Dogecoin is also likely to resume its rally. The current market focus is on whether Dogecoin can hold the psychological support level of $0.10 and translate the renewed ETF inflows into a price rebound.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*