Bitwise also pulls out of Dogecoin… Will DOGE collapse below $0.080?

▲ Dogecoin (DOGE) ©

Dogecoin (DOGE) fell 7% this week, and with Bitwise's Dogecoin spot ETF liquidation announced, the risk of further decline is increasing. As the bearish trend continues technically, the defense of the $0.080 support level has emerged as a key variable that will determine the short-term price direction.

According to investment media FXStreet on September 11 (local time), Dogecoin rebounded slightly on Friday, but failed to fully escape the bearish trend, having fallen about 3% for two consecutive days prior. Bitwise announced its plan to liquidate BWOW, a Dogecoin spot ETF, on Thursday, putting pressure on institutional demand. Bitwise explained that the decision was made to optimize its product lineup to meet changing investor demand.

BWOW's last trading day is scheduled for October 14, after which it will cease operations and convert its held DOGE into cash. Bitwise plans to distribute cash to investors after finally liquidating the fund on October 22. According to SoSoValue, BWOW's net asset value was approximately $687,730 as of Thursday. The media pointed out that this volume could increase selling pressure on October 14. In contrast, Grayscale's and 21Shares' Dogecoin spot ETFs, GDOG and TDOG, hold assets worth $8.61 million and $2.53 million, respectively.

The technical trend also leans bearish. DOGE is trading above $0.080 on Friday, but it is below both the 50-period Exponential Moving Average (EMA) of $0.0870 and the 100-period EMA of $0.0857 on the 4-hour chart. It is currently testing the 200-period EMA at around $0.0827, and a clear break below this support could lead to a drop to the low of $0.0801. In the event of further correction, the 127.2% and 161.8% Fibonacci extension levels of $0.0745 and $0.0673 are presented as the next support levels.

Momentum indicators also show sustained selling pressure. The 4-hour chart Relative Strength Index (RSI) is at 35, just above the oversold zone, and the Moving Average Convergence Divergence (MACD) is declining below the zero line. In case of a rebound, the 78.6% Fibonacci retracement level of $0.0845 will be the first resistance, followed by the 100-period EMA of $0.0857 and the 50-period EMA of $0.0870. If these are surpassed, the 50% Fibonacci retracement level of $0.0904 is expected to act as a stronger resistance.

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