Dogecoin Price Crash Looms as Flag, Death Cross, Falling DOGE ETF Inflows Coincide

Dogecoin price has crashed in the past few weeks as it moved into a bear market. DOGE has dropped by 36% from the September high, and numerous catalysts points to a steeper plunge as its ETF inflows slow. 

Dogecoin Price at Risk as Death Cross Looms

The daily timeframe chart shows that the DOGE price has been in a strong bearish trend in the past few weeks. It plunged from a high of $0.3066 in September to $0.1947 today. 

The coin dropped below the lower side of the rising wedge pattern, which is a common bearish sign. Most importantly, the coin is about to form a death cross pattern, which is a common bearish sign. This cross happens when the 50-day and 200-day Exponential Moving Averages (EMA) cross each other. 

Therefore, the coin will likely plunge and possibly retest the key support at $0.1515, its lowest level on October 10 when the crypto market crashed. Such a move will be a 22% decline from the current level. 

DOGE Price Has Formed a Bearish Flag Pattern on the Weekly

The weekly timeframe chart also shows that the coin has formed a bearish flag pattern on the weekly. This pattern is characterized by a vertical line and an ascending channel. In this case, the vertical line started at $0.4838, while its lower side is at $0.1295. 

The coin has formed an ascending channel, which is part of the flag section. Therefore, the token may soon have a bearish breakout, potentially to the key support at $0.0052, down by over 90% from the current level. A move to that level will be confirmed if it drops below the support at $0.0570, its lowest point in October 2023. 

DOGE ETF Inflows are Slowing

The main fundamental risk for the DOGE price is the fact that inflows into the recently-launched Dogecoin ETF has continued falling. Data show that the REX-Osprey DOGE ETF (DOJE) has accumulated about $30.7 million in assets since its launch in September. 

More data shows that the ETF has not had any inflows in the past few trading days, a sign that demand has waned. This is a big contrast to the REX-Osprey XRP ETF (XRPR), which has crossed the important milestone of $100 million. 

Its performance is likely because it has a high expense ratio of 1.5%, which is much higher than most American funds. It is also because of the $364 million liquidations earlier this month. As such, investors are likely staying in the sidelines as they wait for the next catalyst.