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▲ Dogecoin (DOGE)/AI Generated Image
Dogecoin (DOGE) is showing a wait-and-see attitude ahead of the release of the US Personal Consumption Expenditures (PCE) price index, but it has moved to defend its support line, buoyed by whale investors' buying dominance and three consecutive weeks of exchange-traded fund (ETF) capital inflows.
According to crypto media outlet CoinGape on September 30 (local time), market analyst Muthoni Mary analyzed that despite Dogecoin experiencing a slight correction on the last trading day of September, the bullish sentiment of whale investors in the futures market and increasing institutional demand are supporting the downside. On this day, Dogecoin fell by 1.37% to trade around $0.0934, indicating a breather.
Capital inflows through institutional funds continued for three consecutive weeks, proving a solid buying base. According to SoSoValue's aggregation, the Grayscale Dogecoin Trust ETF achieved total net assets of $14.11 million and cumulative net inflows of $16.34 million. In the derivatives market, whale investors are maintaining a bullish stance by increasing their long positions, but smart money traders have expressed mixed views, maintaining a cautious attitude towards long-term prospects.
In terms of technical indicators, attempts at a short-term rebound and downward pressure are in a tight standoff. On the 4-hour candlestick chart, the Relative Strength Index (RSI) is forming higher lows, suggesting an accumulation of upward pressure, which supports the possibility of breaking through the $0.095 resistance level. On the other hand, the RSI is below the benchmark 50, and the Awesome Oscillator (AO) also maintains red bars in the negative territory, indicating significant downward pressure from selling forces.
Experts predict that if Dogecoin breaks above the $0.095 resistance, it could gain further upward momentum, but if it fails to defend the key support level of $0.092, the decline could extend to $0.085. Coupled with macroeconomic volatility due to the release of US inflation data, whether the $0.092 defense holds will be a key determinant of the price direction in the early fourth quarter.
[Article Key Summary]
-Dogecoin fell to around $0.0934 ahead of the PCE announcement, but whale buying and 3 consecutive weeks of ETF inflows supported the downside.
-The Grayscale Dogecoin Trust ETF recorded cumulative net inflows of $16.34 million, maintaining institutional capital inflows.
-While aiming to break $0.095 with an RSI rebound, a break below the $0.092 support could push it down to $0.085.
*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.*
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