Dogecoin price has crashed below an important level this week as liquidations jumped and the Crypto Fear and Greed Index sank into the fear zone. This article provides a DOGE price forecast as a risky pattern forms despite the ongoing DOJE ETF inflows.
Dogecoin price technical analysis as a rising wedge forms
The daily timeframe chart indicates that the DOGE price has declined significantly over the past few days. It has plunged from a high of $0.3076 on September 13 to the current $0.2275, its lowest level since September 8.
The coin has moved below the 50-day Exponential Moving Average (EMA). It has also moved below the ascending trendline that connects the lowest level since June 23.
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The Relative Strength Index (RSI) and the MACD have moved downwards. The RSI has dropped below the neutral point at 50, a sign that the downward momentum is continuing.
Worse, the Dogecoin price has formed a rising wedge pattern. This pattern comprises of two ascending and converging trendlines. In most periods, this pattern leads to a strong bearish breakout.
However, a closer look shows that the two lines of the wedge are not nearing their convergence. As such, the coin could rebound and move to the upper side of the wedge at around $0.3076.
DOGE price will ultimately have a strong bearish breakout, potentially to the key support level at $0.1884, its lowest level on August 3. This lowest point is notable because it formed a double-top point at $0.2870.
A move above the upper side of the channel at $0.3076 will invalidate the bearish Dogecoin price forecast.
DOJE ETF is gaining momentum
There are some potential catalysts for the Dogecoin price in the coming weeks. One of these main catalysts is the REX-Osprey DOGE ETF, which was launched last week.
Data on the website shows that the DOJE ETF is gaining momentum in a very difficult period. It now has over $27 million in assets a few days after it was launched. Mot notably, it has had inflows in each trading day, which is a sign of robust demand.
The ongoing ETF inflows is a positive thing as market participants wait for the spot ETF approval for companies like Grayscale, 21Shares, and Bitwise. These ETFs will be better, simpler, and cheaper than the REX-Osprey one because they will use the ‘33 Act.
The other potential catalyst for the DOGE price is that the Federal Reserve has started cutting interest rates. It slashed them by 0.25% last week, and hinted of two more this year. Cryptocurrency prices do well when the Federal Reserve is cutting rates.
Most importantly, there are signs of more demand of Dogecoin from companies launching their treasury companies. CleanCore Solutions has launched a $600 million DOGE treasury fund, while Bit Origin and Neptune Origin have announced plans to buy 70.5 million and 1 million coins.
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