Dogecoin (DOGE) Price: Memecoin Crashes as Institutions Stay Away

TLDR

• Dogecoin has dropped 9-15% in recent days, falling below the $0.150 price level and tracking Bitcoin’s weakness
• New DOGE ETFs from Grayscale and Bitwise have disappointed with only $2.16 million in combined inflows
• The low ETF inflows suggest institutional investors remain skeptical about memecoins despite Elon Musk’s support
• Dogecoin maintains a 0.7 to 0.85 correlation with Bitcoin, making it vulnerable to amplified drops when BTC falls
• Technical analysis shows DOGE trading below key moving averages with immediate resistance at $0.1420 and support at $0.1330

Dogecoin has declined between 9% and 15% over recent days as the popular memecoin follows Bitcoin’s downward trend. The price has dropped below the $0.150 mark and is currently trading below $0.1450.

The decline comes alongside the disappointing launch of new Dogecoin exchange-traded funds. Grayscale and Bitwise launched DOGE ETFs but have attracted only $2.16 million in combined inflows.

These numbers represent a tiny fraction of what Bitcoin and Ethereum ETFs generated during their debuts. The weak reception suggests institutional investors remain cautious about memecoins.

Despite Elon Musk’s public support for Dogecoin, fund managers appear hesitant to allocate capital to the asset. Institutions prioritize cryptocurrencies they view as fundamentally stronger.

The memecoin positioning of DOGE creates additional challenges for attracting traditional finance players. Fund managers face strict risk constraints that make speculative assets less appealing.

ETF Struggles Create Market Pressure

Traders are watching whether DOGE ETFs can attract more institutional capital in coming days. Without increased flows, selling pressure on the spot market could intensify.

Arbitrageurs may exploit the imbalance between ETF supply and actual demand. This could amplify short-term volatility for Dogecoin holders.

The correlation between Dogecoin and Bitcoin typically ranges from 0.7 to 0.85 depending on market conditions. This relationship exposes DOGE to amplified corrections when Bitcoin drops.

Bitcoin currently shows signs of technical weakness around major resistance zones. If BTC loses important support levels, Dogecoin could face disproportionate selling pressure.

Technical Levels Point to Further Downside Risk

Dogecoin broke below a key bullish trend line with support at $0.1520 on the hourly chart. The price fell as low as $0.1369 before showing some consolidation.

DOGE now trades below the 100-hourly simple moving average. Immediate resistance sits near $0.1420 on any recovery attempt.

The first major resistance level is at $0.1465, which aligns with the 50% Fibonacci retracement of the recent decline. Further resistance appears at $0.1490 and $0.1520.

On the downside, initial support is near $0.1370. The next major support level sits at $0.1350.

The main support zone is at $0.1330. A break below this level could push prices toward $0.1250 or even $0.1240 in the near term.

Technical analysts are monitoring Fibonacci levels and key moving averages for signals. Retail stop-losses could trigger in cascades during bearish phases.

The absence of institutional support confirmed by the ETF performance increases the risk of imbalance between buyers and sellers. Dogecoin’s speculative nature means volatility often explodes during downward moves.

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