Dogecoin Tests $0.10 as Bitwise Fund Liquidation Looms

Dogecoin (DOGE) started October trading near $0.0955, struggling to regain the $0.10 mark it briefly surpassed in late September. As of October 5, roughly 156.2 billion DOGE coins were in circulation, with the network issuing about 14.4 million new DOGE daily. A key event to watch is the liquidation of Bitwise's BWOW fund, scheduled to convert its DOGE holdings to cash on October 14, with proceeds distributed around October 22.

The cryptocurrency faces a critical test in October, as buyers must sustain momentum to push DOGE beyond its recent high of $0.1056. A successful rally would require a 4.7% gain to reach $0.10 and a 10.6% increase to hit $0.1056. Conversely, a downturn could see DOGE revisiting its September low of $0.0817. The fixed issuance of DOGE adds a layer of complexity, with approximately 14.4 million new coins entering circulation daily, though this does not directly predict price movements.

On the adoption front, the DogeOS project launched a public testnet at the end of September, introducing EVM smart contracts to the Dogecoin ecosystem. However, testnet activity does not equate to mainnet demand, and its impact on DOGE's price remains uncertain. The bullish scenario for October hinges on sustained spot buying and favorable market conditions, while the bearish outlook could see DOGE retesting its September lows.

As October progresses, the interplay between spot demand, fixed issuance, and the impending liquidation of Bitwise's fund will shape DOGE's trajectory. The token's ability to hold above $0.10 on daily closes will be a key indicator of its short-term prospects.