Bullish pattern seen on Dogecoin chart.
Despite the recent lack of inflows into DOGE-ETF Grayscale, Bitwise, and 21Shares over the last two trading days, totaling $0, the three funds managed to increase their assets by $4 million this month, bringing their total holdings to $10.9 million. While this may seem like a small amount, it only represents 0.05% of their market capitalization. Additionally, the trading volume for Dogecoin on January 28 was a mere $170,000.
Compared to other funds investing in alternative coins, ETFs based on Dogecoin are lagging behind. For instance, spot ETF funds for Chainlink saw inflows exceeding $73 million, while those for XRP and Solana garnered $1.26 billion and $884 million, respectively.
Despite the apparent lack of interest from institutional investors and the downward price trajectory of the meme-inspired coin, which dropped from a high of $0.3060 on September 13 to a low of $0.1162, Dogecoin’s chart reveals the formation of a bullish pattern. This pattern entails the creation of a double bottom at $0.1162 and a neckline at $0.1560, marking the highest level seen this month.
As a result, the most likely scenario is a rebound in the price as long as it stays above a critical support level at $0.1162. Any movement beyond this level would indicate potential further gains, possibly up to $0.200. Conversely, a decline below the double bottom level at $0.1162 would negate the bullish outlook and signal further downturns, likely falling to $0.100.
Despite the challenges faced by Dogecoin ETFs in attracting institutional capital and the price fluctuations experienced by the coin, the formation of a bullish pattern indicates a potential bullish momentum in the near future. This pattern, along with the support and resistance levels identified, suggests that Dogecoin may see a rise in value if it maintains its current trajectory. While market conditions remain uncertain, the formation of this pattern provides hope for Dogecoin investors and traders seeking positive price movements in the short term.
