Dogecoin (DOGE) has officially entered a technical bear market after sliding more than 37% from its September peak, with on-chain metrics showing weakening investor momentum and fading enthusiasm around its recently launched ETF.
Summary
- Dogecoin price has dropped below $0.19, forming a potential death cross pattern on the charts.
- DOGE ETF inflows have stalled as investors remain cautious following recent market volatility.
- Futures open interest and funding rates are declining, signaling reduced leverage and trader participation.
DOGE Price Extends Decline
As of press time, Dogecoin was trading at $0.1900, its lowest level since Oct. 12, bringing its market capitalization down to around $28 billion. The token now sits nearly 60% below its 2024 peak, reflecting a steep correction from earlier highs.
The broader crypto market downturn which triggered more than $365 million in liquidations has deepened DOGE’s losses, pushing many traders to the sidelines.
Meanwhile, inflows into the REX-Osprey DOGE ETF (DOJE) have cooled after an initially strong debut. The fund currently holds about $31 million in assets, a figure that has remained flat throughout the week. While still a sign of steady institutional interest, the slowdown highlights cautious investor sentiment amid rising market uncertainty.
Futures and Funding Rates Point to Weakness
DOGE’s derivatives metrics have also turned bearish. The funding rate has stayed in negative territory for the past two days, suggesting that short positions currently outweigh longs an indicator that traders expect further downside.
At the same time, open interest in Dogecoin futures has fallen sharply, dropping from $6 billion in September to just $1.92 billion. Declining open interest typically signals reduced speculative activity as traders close positions or avoid entering new ones during periods of high volatility.
Still, analysts note that a potential U.S. government funding resolution could revive risk appetite and accelerate DOGE ETF approvals, providing a possible short-term catalyst for recovery.
Dogecoin Price Technical Outlook
On the daily chart, Dogecoin’s price action paints a grim picture. The token has broken below both its 50-day and 200-day exponential moving averages (EMAs), a bearish signal often seen before a death cross when the short-term moving average crosses below the long-term one.
The recent sell-off also confirms a rising wedge breakdown, a classic reversal pattern formed by two upward-sloping, converging trendlines.
Technical indicators echo the weakness:
- The Relative Strength Index (RSI) has dropped below 50, nearing oversold territory.
- The Percentage Price Oscillator (PPO) has slipped beneath the zero line, reinforcing bearish momentum.
If the current downtrend continues, analysts expect sellers to target $0.1515, Dogecoin’s year-to-date low. A break below that level could open the door to deeper losses in the coming weeks.
