Dogecoin price crashed to a crucial support level this week as the crypto market plunged. Its technicals, upcoming exchange-traded funds approval, and the ongoing DOJE ETF inflows point to a 25% jump.
Summary
- Dogecoin dipped this week alongside the broader crypto market, but fresh momentum may be building.
- The newly launched REX-Osprey DOGE ETF has already pulled in nearly $8 million in assets over four trading days despite its steep 0.75% fee, signaling appetite for future DOGE-linked ETFs from bigger issuers.
- Futures data also point bullish, with positive funding rates since July and liquidations plunging from $59 million on Monday to under $4 million today.
DOGE ETF inflows rise ahead of approvals
Dogecoin (DOGE) price retreated this week, mirroring the performance of the broader crypto market. However, some positives may push it higher in the near term.
One of these bullish catalysts is that the recently launched REX-Osprey DOGE ETF whose ticker is DOJE is doing well. According to its website, it has accumulated almost $8 million in assets in the last four trading days.
Data compiled by ETF.com shows that the fund has had inflows in each of these days. Most of the inflows happened on Monday as the crypto market crashed. It added $4.3 million in assets on that day and $600,000 on Tuesday.
The ongoing DOGE ETF inflow is notable because of its high expense ratio of 0.75%, which is higher than most crypto funds.
As such, it is a sign that the pending ETFs by companies like Bitwise, Grayscale, and 21Shares will have more inflows. That’s because these funds will have lower fees and utilize the more mainstream ‘33 Act approach.
Dogecoin price has more bullish catalysts. For example, there are signs that traders in the futures market expect it to keep soaring. The weighted funding rate has remained in the positive side since July.
Additionally, DOGE liquidations have plunged in the past few days. After soaring to $59 million on Monday, these liquidations have fallen to less than $4 million today. Falling liquidations is a positive thing as it is reducing the selling pressure.
Dogecoin price technical analysis
The daily timeframe chart shows that the DOGE price has rebounded in the past few months. It has jumped from a low of $0.1407 in March to $0.25 today.
The coin has now retested the lower side of the ascending channel. It has often rebounded whenever it hit this trendline. Also, the coin has remained above the 50-day and 100-day Exponential Moving Averages.
Therefore, the coin will likely continue rising as bulls target the important resistance level at $0.3076, its highest point on Sept. 12. This price is about 25% above the current level.
