Key Insights
- Dogecoin faces continued selling pressure as ETF demand and spot inflows remain stagnant.
- Institutional interest in DOGE remains low, further weighed down by persistent outflows.
- A break below the long-term trendline could signal a major downturn, with $0.08 to $0.09 as potential support.
Dogecoin’s price continues to struggle, trading around $0.1128 after slipping below the key $0.12 level. The latest downturn has brought the cryptocurrency to test a long-standing trendline that has provided crucial support since mid-2024. This development follows a slowdown in ETF flows and persistent spot outflows, leaving Dogecoin without the necessary catalysts to reverse months of bearish pressure.
The anticipated demand from Dogecoin spot ETFs has failed to materialize. Data from SoSoValue reveals no significant inflows across all three DOGE spot ETFs as of January 29, with total net assets only reaching $10.15 million. In comparison, competing altcoins like XRP have drawn in billions, with Solana ETFs accumulating nearly $900 million in assets. This stark contrast underscores a general lack of institutional interest in Dogecoin. Without fresh demand from ETFs, the token’s price remains heavily reliant on retail sentiment and spot market flows.
Spot Outflows Continue to Weigh on Dogecoin
Spot market dynamics for Dogecoin remain negative, with Coinglass data showing $10.88 million in net outflows on January 30. This marks an ongoing pattern of distribution that has continued for the past two months. The persistent selling pressure suggests that investors are offloading their positions rather than seeking to accumulate DOGE at lower levels. The lack of a clear catalyst, such as renewed involvement from high-profile figures like Elon Musk, has allowed sellers to dominate the market.
Dogecoin’s price is now testing a key ascending trendline that has supported the coin through various corrections since mid-2024. A break below this trendline would mark a significant shift, transitioning the market from a period of consolidation to a possible breakdown. Meanwhile, the price continues to trade below all major exponential moving averages (EMAs), signaling a bearish market structure. The descending trendline from September 2024 further limits any rally attempts, creating a narrowing wedge pattern. As the price approaches the apex, a resolution in either direction is imminent.
Intraday Weakness Adds to Bearish Sentiment
Short-term momentum for Dogecoin remains weak, with the price continuing its downtrend since January 28. The MACD remains negative, and the RSI is approaching oversold levels, though not yet signaling an imminent reversal. A break above the key intraday resistance near $0.1145 could signal stabilization, but the bears remain firmly in control. Support lies at $0.1120, with the long-term trendline offering the last line of defense against a deeper decline.
