TLDR
- Dogecoin dropped 7% in 24 hours following disappointing ETF debut
- REX-Osprey DOGE ETF fell 5.76% since Thursday launch
- Trading volume increased 83% showing heavy selling pressure
- Key support at $0.25 being tested after drop from $0.27
- 80% of derivatives traders remain bullish despite price decline
Dogecoin faced intense selling pressure over the weekend, dropping more than 11% in 24 hours. The decline made DOGE the worst performer among top ten cryptocurrencies by market capitalization.
The selloff began Sunday night and continued into Monday trading. DOGE fell from $0.27 to support levels around $0.23 during the decline.
Trading volume surged 83% during the price drop. The increased activity indicates strong selling pressure from both retail and institutional traders.
The timing coincided with the launch of America’s first Dogecoin ETF. The REX-Osprey DOGE ETF began trading Thursday under ticker DOJE.
ETF Performance Disappoints Markets
The new Dogecoin ETF failed to generate expected buying interest. DOJE declined 5.76% since its debut, closing Friday at $24.80.
The fund holds DOGE and DOGE derivatives to provide regulated exposure. REX Shares marketed the ETF as simplified access to Dogecoin for traditional investors.
ETF issuers included performance disclaimers in their documentation. They stated investing in DOJE differs from direct DOGE ownership.
The company noted the ETF may not replicate underlying asset performance exactly. These warnings may have dampened institutional enthusiasm.
Trading volumes for the new ETF remained modest in early days. The lukewarm reception contrasted with pre-launch expectations.
Despite the price decline, derivatives markets show mixed sentiment. Coinglass data reveals 80% of traders maintain long positions on DOGE.
This suggests many expect upward price movement ahead. The high long ratio persists even during spot price weakness.
Technical Analysis and Key Levels
Market analysts are watching crucial support and resistance zones. The $0.25 level represents key support after the recent decline.
Some technical observers note accumulation activity at current prices. This could indicate smart money positioning for potential recovery.
Resistance remains firm near $0.27 based on recent trading patterns. A decisive break above this zone could signal renewed bullish momentum.
Total market cap dropped to approximately $34.5 billion during the selloff. This represents a decrease from weekly highs near $40 billion.
Daily trading volume exceeded $4.3 billion across all exchanges. This nearly doubled the typical 50-day average volume.
The volume surge indicates active participation from major traders. Both institutional rebalancing and retail activity contributed to elevated volumes.
Current price action shows DOGE trading between $0.24-$0.26 range. Stability at these levels could prevent further downside.
Technical patterns suggest watching for breakout signals. Movement above $0.27 resistance or below $0.25 support will determine direction.
Dogecoin Price Prediction
Short-term forecasts show mixed outlooks for DOGE price movement. Conservative estimates suggest potential retest of $0.23 if selling pressure continues.
More optimistic predictions point toward recovery to $0.28-$0.30 range. This scenario requires holding current support levels and improved market sentiment.
Analyst consensus places average September target around $0.263. Some experts see potential monthly highs near $0.268 under favorable conditions.
Current derivatives positioning supports bullish bias despite recent weakness. The 80% long ratio indicates trader confidence in eventual recovery.
