Dogecoin price has moved sideways in the past three months as the crypto winter has continued and as demand for the DOGE ETFs dried. DOGE token was trading at $0.0945 on Thursday, inside the narrow range it has been since January.
Demand for DOGE ETFs has dried up
One of the most important catalysts for Dogecoin price was the launch of its exchange-traded funds (ETFs), which gave Wall Street investors a chance to invest in the biggest meme coin.
Dogecoin attracted more ETF applications than other top utility coins like Avalanche, Polkadot, and Hedera. Today, Dogecoin ETFs by companies like Grayscale, 21Shares, and Bitwise are trading.
The challenge, however, is that these funds have not attracted inflows from investors. The Grayscale Dogecoin ETF has just $6.9 million in assets, while the other two have $3.4 million and $618k.
A closer look at the data shows that no investor has bought these funds since April 15 this year. Also, these funds now hold $10.9 million in assets, representing 0.08% of its market capitalization.
One reason why these funds have backfired is that they are all expensive to own, with the cheapest having an expense ratio of 0.34%. In contrast, the cheapest Bitcoin ETF has a ratio of 0.14%.
Another reason is that American investors have demonstrated that they are not interested in altcoin ETFs. While Bitcoin ETFs have added over $56 billion in assets, those tracking Ethereum have added $12.5 billion. Other popular altcoin ETFs like Solana and XRP have added about $1 billion each.
The other main reason why Dogecoin’s price continues to consolidate is that demand in the spot and futures market has continued falling in the past few months. Its daily volume has dropped to about $2 billion from a record higher of $13 billion.
Additionally, Elon Musk, who was its top promoter, is no longer tweeting about it leading to weak visibility. Also, analysts are skeptical about whether he will add it on the upcoming X Money solution.
Dogecoin price technical analysis
DOGE price chart | Source: TradingView
The daily timeframe chart shows that the DOGE price has recoiled in the past few months. It has found an important support at $0.087, where it failed to move several times this year.
There are also signs that it has moved to the accumulation phase of the Wyckoff Theory, which normally leads to more gains as the asset moves to the markup stage.
Therefore, a contrarian case can be made about Dogecoin price now that Bitcoin is rising. A rebound may see it soar to the key resistance level at $0.1036.
A move above that level will point to more gains, potentially to the key target at $0.1200. On the other hand, a drop below the key support at $0.087 will invalidate the bullish outlook and point to more downside.