Dogecoin Faces Downside Risks Amid ETF Outflows and Weakening Demand

Key Takeaways

Dogecoin traded near $0.084 on Tuesday after rebounding from an intraday low around $0.0800. DOGE-focused ETFs recorded $399,460 in outflows Monday following no net flows last week.

Market Analysis

The token remains below key moving averages, leaving buyers facing a test of whether nearby support can hold. Dogecoin ETFs record nearly $400,000 in withdrawals DOGE-focused exchange-traded funds posted $399,460 in net outflows on Monday, according to SoSoValue data. The withdrawals followed a week of no net flows, suggesting weaker demand through those investment products.

Technical Indicators

The Moving Average Convergence Divergence indicator has crossed below zero, while the Relative Strength Index is near 39. The RSI reading indicates subdued buying momentum but remains above the conventional oversold threshold of 30. Dogecoin edged higher on Tuesday after testing $0.0800, offering signs of stabilization following Monday’s 5% decline.

Supply Concentration

Santiment data shows that wallets holding more than 100 million DOGE account for 69.74% of circulating supply, down from 70.02% on September 1. That represents a decline of 0.28 percentage points in the cohort’s share. The change suggests reduced supply concentration among the largest addresses.

Resistance and Support

Resistance sits at the 50-day EMA near $0.0876 and the 200-day EMA at $0.0923. A confirmed breakdown below $0.0800 could bring the July 23 low at $0.0683 into focus. On the upside, a sustained recovery above $0.0876 would help ease immediate pressure.