The OG meme coin was rejected even before it had the chance to truly challenge the $0.10 resistance earlier this week, but it has rebounded from the subsequent multi-day low.
Popular analyst Ali Martinez noted that a breakout might indeed be brewing, but the asset would have to overcome a key resistance level to do so. However, the ETF inflows do not support this thesis.
14% Move Next?
Recall that Dogecoin surged to $0.104 during the market-wide rally on September 22-23 before the bears stepped up and pushed it south hard. In the span of just several hours, the meme coin slumped to $0.92. Since then, it has tried to take down to $0.10 resistance on several occasions, but to no avail.
The latest rejection came on Friday amid the market-wide crash that drove BTC down by over $3,500. DOGE, on the other hand, dipped from $0.098 to $0.091 before it rebounded to $0.092-$0.093 during the weekend.
Martinez noted that the asset’s consolidation phase inside a descending triangle continues on the 4-hour chart. Dogecoin would have to overcome $0.095 decisively and close above it on the same timeframe, which would confirm a bullish breakout. The popular analyst, who last week outlined that DOGE whales had scooped up over 1.14 billion tokens in 4 days, predicted that a 14% surge to $0.106 would be next if the meme coin reclaims the aforementioned resistance.
“As price approaches the apex, the structure is becoming increasingly compressed, and a breakout could be getting closer,” he added.
ETF Flows Suggest Caution
The last full business week of September brought something Dogecoin fans hadn’t seen — an actual interest in the spot exchange-traded funds tracking its performance. The total net inflows hit a new record of nearly $2.90 million. Although this amount is nowhere near as impressive as the inflows into the BTC, ETH, XRP, or SOL ETFs, it was still a record for the meme coin.
This was seen as bullish at the time, but the next five-day trading period couldn’t maintain the momentum. Data from SoSoValue shows that the interest evaporated on Monday, but the inflows returned on Tuesday with $878,790. However, investors took out $551,430 a day later, and there were no reportable inflows on October 1 and 2.
As such, Dogecoin’s institutional side remains fragile, but the asset has never been driven by such large players, as retail often dominates its price moves.
Source: CryptoPotato
