The recent price drop of Dogecoin from $0.160 to $0.149, slipping past the important $0.155 support level, has sparked intrigue among market participants. For the first time in half a year, Dogecoin’s exchange inflows have become positive, indicating a potential stabilization despite continuing sale pressures. This intriguing development has occurred alongside substantial acquisitions by large-scale investors, suggesting an interest in price movements within the $0.150-$0.155 range as the decision for a spot DOGE ETF draws closer in the coming week.
Will New Buying Interest Offset the Recent Dip?
In the last day, Dogecoin faced a 7.4% value reduction, sliding to $0.149, breaking through the previously stable $0.155 support. This price action validates the breakdown of the descending triangular pattern that has been forming this year. Interestingly, trading volume surged 18% more than the weekly average, pointing to strong selling activity, mainly from institutional investors.
Technically, the fall beneath the 0.5 Fibonacci retracement level raises concerns that Dogecoin could slide to the $0.145-$0.140 mark. Yet, technical indicators show a slowdown in the selling push, evidenced by rising lows in the RSI and weakening momentum in the MACD.
How Might ETF Decisions Shape the Market?
The imminent decision on the DOGE ETF within a week could pivot the current market compression, potentially pushing prices to $0.162-$0.165 upon approval. Alternatively, if prices stabilize below $0.150, the decline could extend to the $0.115-$0.085 range.
Investors are advised to watch net exchange flows and significant investor activity closely, as these have been precursors to market reversals over the previous years. Current market sentiment is extremely fearful, yet the possibility of a swift upward rebound remains.
Recent on-chain data shows that large-scale investors have aggressively accumulated Dogecoin even amid price drops, adding approximately 4.72 billion DOGE, equivalent to around $770 million, to their holdings. Additionally, the transition to positive net inflows to exchanges signals a market structure shift observed prior to previous market bottoms.
“We’ve noted significant institutional activity that suggests a strategic play ahead of the anticipated ETF decisions,” commented a market expert.
Key Analysis Points
- •DOGE’s short-term price is likely to oscillate between $0.149 and $0.158.
- •The ETF decision is pivotal, possibly dictating a new price direction.
- •CryptoAppsy reports a 0.99% rise, placing Dogecoin at $0.1576 today.
With these dynamics in play, stakeholders are watching carefully for any developments that might signal the next market shift. As the market remains on edge, the impending ETF verdict could set the course for future price trends.