Dogecoin extended its downward trajectory, falling to its lowest level since October 10 as technical indicators deteriorated and ETF-related demand remained absent. The sustained weakness suggests growing downside risks for DOGE amid fading speculative interest.
The token has come under pressure as broader demand indicators soften. Data from SoSoValue shows that the Grayscale and Bitwise Dogecoin ETFs have failed to record any new inflows since December 11. Combined, the two products have attracted just $2 million in inflows and hold roughly $5 million in net assets, highlighting the lack of institutional momentum behind DOGE.
Derivatives data reinforces the bearish narrative. Dogecoin futures open interest has dropped to around $1.4 billion, sharply down from the year-to-date peak of more than $6 billion. Declining open interest typically signals reduced trader participation and weakening conviction among buyers.
Dogecoin price technical analysis warn of further downside
On the three-day chart, Dogecoin remains locked in a well-defined downtrend that has persisted for several months. Multiple bearish chart formations suggest that selling pressure could intensify in the near term.
One key signal is the formation of a death cross, where the 50-day Exponential Moving Average crossed below the 200-day EMA on December 9. This pattern is widely viewed as a medium- to long-term bearish indicator and often precedes extended declines.
DOGE has also completed a head-and-shoulders formation, another classic reversal pattern. The head is located near $0.4855, with the left shoulder around $0.2285 and the right shoulder close to $0.30. Price action has now broken below the neckline, reinforcing the bearish outlook.
Momentum indicators continue to confirm the weakness. Both the Relative Strength Index and the MACD are trending lower, signaling strengthening downside momentum. If selling pressure persists, bears are likely to target the next major support near $0.080, which marked the August 2024 low. This level sits roughly 35% below current prices.
From a technical perspective, the bearish scenario would be invalidated if Dogecoin manages to reclaim and hold above the psychological $0.15 level, which could open the door for a short-term recovery.
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