Dogecoin Price Outlook as T. Rowe Debuts Fourth DOGE ETF With 2.6M Allocation

Dogecoin (DOGE) price is down by 3.17% today, July 17, to trade at $0.071 at the time of writing. The drop comes despite T.Rowe launching an active crypto ETF on July 16 that offers exposure to multiple cryptocurrencies, including Dogecoin.

While this will be the fourth ETF for the biggest meme coin by market cap, SoSoValue data shows that institutions are not impressed, with DOGE ETFs recording zero inflows since June 17.

T.Rowe Debuts DOGE ETF With 2.6M Allocation

T.Rowe, an asset manager with $1.8 trillion in assets under management, launched the first active crypto ETF on July 16. That ETF holds Dogecoin among other crypto assets.

This crypto ETF launched with $15 million in seed capital from T.Rowe, with Dogecoin getting a weighting of 1.28%. That means the ETF holds 2.6 million DOGE tokens valued at $192,000.

According to Bloomberg ETF analyst Eric Balchunas, T.Rowe is a “legacy stock picker” and the addition of Dogecoin to this ETF alongside Bitcoin and Ethereum suggests the meme coin is getting some credibility from Wall Street.

Still, SoSoValue shows that there have been no inflows to Dogecoin ETFs for one month between June 17 and July 17.

In fact, Dogecoin ETFs have recorded $871,000 in outflows in July, with these outflows coinciding with a $1.2 billion sell-off in the meme coin market.

The lack of retail and institutional demand comes as the price of Dogecoin drops by 54% from its January high of $0.156 to trade at $0.071 on July 17.

Dogecoin Price Signals a Bullish Divergence as Bears Test Crucial Support

Dogecoin has printed a bullish divergence on the daily chart because the AO bars that are negative are shrinking despite the price dropping.

These green AO bars support a bullish long-term Dogecoin price forecast because they show that bears are losing their grip.

But the volume bars that have been red for three straight days also show that the selling pressure is still higher than the buying pressure.

This selling pressure could pull the price of Dogecoin below the support of $0.070 to $0.060.

However, if Dogecoin remains above $0.070, it will confirm a double-bottom pattern, that could cause a 10% gain to the July 4 high of $0.079.

The ADX line that is dropping also suggests that the trend around Dogecoin is weak and the price might hover near this support of $0.070 unless either buyers or sellers return.

Futures Data Signals Weak Demand for Dogecoin

Data from Coinglass shows that futures volumes for Dogecoin have dropped by 18% today, July 17, to $775 million at the time of writing. The open interest has also dropped by 11% to $1.01 billion.

These drops suggest that futures traders are reducing their positions on Dogecoin as they become less confident about where the price is heading

This drop could be coming from long buyers who are either closing their positions or being wiped out through liquidations.

The exiting long buyers have led to short sellers dominating most of the futures positions in Dogecoin, with the long/short ratio dropping to 0.81.