Dogecoin Braces for Potential Breakdown as Bitwise Liquidates ETF
Dogecoin (DOGE) is struggling to recover from two consecutive sessions of losses, and its outlook remains bearish. Despite a modest price increase on Friday, DOGE's momentum indicators suggest sustained selling pressure.
Bitwise announced that it will liquidate its Dogecoin ETF, BWOW, effective October 14. The fund held approximately $687,730 in net assets as of Thursday and is expected to be converted into cash by October 22. This move may add modest selling pressure to DOGE, although the fund's relatively small size compared to other DOGE-focused investment products may mitigate its impact.
Dogecoin currently trades below several key moving averages, including its 100-period EMA at $0.0857 and its 50-period EMA at $0.0870. If buyers fail to defend the psychological support zone of $0.0801, the next downside target would be the 127.2% Fibonacci extension at $0.0745, followed by a more substantial correction towards the 161.8% extension near $0.0673.
A break below $0.0801 could expose DOGE to significantly lower support levels and result in a drop of approximately 16%. To begin a meaningful recovery, Dogecoin must first reclaim the $0.0845, $0.0904 resistance region. A sustained close above $0.0904 would weaken the bearish outlook.