Dogecoin, uneasy even with ETF funds returning... will $0.1 collapse?

▲ Dogecoin (DOGE)

Dogecoin (DOGE) has not been able to avoid a bearish warning on its short-term chart, despite the positive news of renewed ETF fund inflows. Although there are signs of revived institutional demand, a rising wedge pattern and weakened technical indicators have made the defense of the $0.10 support level a key market variable.

According to the cryptocurrency specialized media outlet Coingape on May 7 (local time), Dogecoin fell by 4.62% that day, recording $0.11. Despite the price weakness, institutional funds flowed back into Dogecoin ETFs. Coingape reported that Dogecoin ETFs, launched last year, were the first instance of a memecoin entering Wall Street, but they have not created a consistent flow like Bitcoin (BTC) and Ethereum (ETH) ETFs.

Dogecoin ETFs had no fund flow from April 28 to May 4. At that time, Dogecoin's price showed a relatively favorable trend, and some analysts predicted a rise, but ETF buying did not follow. However, fund inflows resumed on May 5 and 6, exceeding $600,000. Coingape explained that this shows ETF demand remains high even in a stagnant price situation.

The problem is the chart. Coingape analyzed that Dogecoin formed a rising wedge pattern on the 4-hour chart. A rising wedge is usually interpreted as a warning sign that selling pressure could strengthen its dominance. According to the article, if Dogecoin breaks below the lower trendline, the price could drop to $0.103, and this movement could put pressure on maintaining the $0.10 support level.

Technical indicators also point to seller dominance. Coingape reported that both the Chaikin Money Flow (CMF) and Relative Strength Index (RSI) are falling, creating an environment where selling pressure can easily seize control from buying pressure. The 4% drop in Dogecoin's price that day also added to the short-term bearish outlook.

However, Dogecoin tends to strongly follow Bitcoin's trend. Coingape reported that since Bitcoin has reached $82,000, Dogecoin could also resume its upward trend if Bitcoin's rally continues. Currently, the market's key focus is on whether Dogecoin can hold the psychological support level of $0.10 and translate the renewed ETF inflows into a price rebound.

*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.*