Meme Coin Investor Sentiment Cools…Dogecoin Warned of Fall to $0.08

▲ Dogecoin (DOGE) ©

Despite institutional fund inflows, Dogecoin (DOGE) has continued its bearish trend for three consecutive weeks, facing the risk of breaking the psychological support level of $0.10. Amid a general sluggishness in the meme coin sector, analysis suggests that individual investors' speculative sentiment is rapidly cooling.

According to investment media FXStreet on May 26 (local time), Dogecoin was pushed down to around $0.10, experiencing strong selling pressure. DOGE has continued its downward trend for three consecutive weeks recently, showing relatively sluggish performance even within the meme coin sector. The media diagnosed that Dogecoin must defend the $0.10 support level to avoid further sharp declines.

What is drawing attention is the institutional fund flow. While Bitcoin (BTC) spot ETFs and Ethereum (ETH) spot ETFs recorded net outflows of approximately $1.26 billion and $216 million respectively last week, Dogecoin spot ETFs have seen steady inflows. According to SoSoValue data, Dogecoin spot ETFs have recorded net inflows for four consecutive weeks recently, with $860,960 flowing in just last week. The media explained that this trend signifies continued institutional investor interest in Dogecoin, a meme coin.

On the other hand, the sentiment in the derivatives market is cold. According to CoinGlass data, DOGE futures open interest has decreased from a high of $1.77 billion recorded on May 6 to its current level of $1.31 billion. This is interpreted as a sign that leverage-based speculative demand and individual investor participation are rapidly slowing down.

The technical trend also remains bearish. DOGE is currently trading below its 50-day, 100-day, and 200-day exponential moving averages (EMA), with resistance levels formed at $0.1036, $0.1059, and $0.1205 respectively. The daily Relative Strength Index (RSI) has dropped to 41, suggesting further downside potential, and both the Moving Average Convergence Divergence (MACD) and its signal line have entered negative territory. The media suggested that if $0.10 breaks, the next downside target would be the February 11 low of $0.0879.

However, the market is also noting the possibility that Dogecoin could find an opportunity for a short-term rebound if institutional fund inflows continue. The media assessed that DOGE is currently entering a critical inflection point amidst conflicting trends of waning individual investor speculative sentiment and increasing institutional buying.

*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.*