Dogecoin forms bearish patterns as DOGE ETF inflows dry up

Source: CryptoNewsNet Original Title: Dogecoin price forms scary patterns as DOGE ETF drought continues Original Link:

Price Analysis

Dogecoin (DOGE) token was trading at $0.1227, down by 75% from its highest point this year. This crash has led to a multi-billion-dollar wipeout.

The token has crashed as signs of weak demand continued. Data shows that major DOGE ETFs have not added any inflows since Dec. 11, with only $2 million in inflows and $5 million in net assets.

Meanwhile, Dogecoin’s futures open interest has dropped to over $1.4 billion, down from the year-to-date high of over $6 billion. Falling open interest is a sign that investors are not buying the token.

Technical Breakdown

The three-day chart shows that DOGE price has been in a strong downward trend in the past few months, with several bearish patterns emerging:

Death Cross Pattern: The coin has formed a death cross pattern as the 50-day and 200-day Exponential Moving Averages crossed each other on Dec. 9, which often leads to further downside.

Head-and-Shoulders Pattern: Dogecoin price has formed a head-and-shoulders pattern, another high-risk indicator. The head is at $0.4855, while the left shoulder is at $0.2285, and the right one was at $0.30. It has now moved below the neckline, confirming more downside.

Momentum Indicators: The Relative Strength Index and the MACD indicators have continued falling, suggesting continued weakness.

Outlook

Sellers are targeting the next key support at $0.080, its lowest level from August last year—approximately 35% below current levels. On the flip side, a move above the psychological point at $0.15 would invalidate the bearish outlook.