Dogecoin Price Flags Multi-year H&S Pattern As Key Demand Metrics Plunge

Dogecoin price is stuck in a technical bear market, a trend that may continue as key metrics like exchange-traded fund inflows and futures open interest slip.

Dogecoin (DOGE) token was trading at $0.09610, down by 80% from its highest level in November 2024. It is hovering near its lowest level since September 2024.

DOGE, the biggest meme coin in the crypto industry, has dropped, mirroring the performance of Bitcoin (BTC) and other altcoins. It has also mirrored the performance of other meme coins like Shiba Inu and Bonk.

Third-party data shows that Dogecoin’s demand has waned in the past few months. A good example of this is in Wall Street, where DOGE ETFs by companies like Grayscale, 21Shares, and BitWise have not attracted any inflows since February 3. 

Their cumulative inflows this month is just $252k, with their assets being $9 million. In contrast, spot XRP ETFs have over $1 billion in assets, while Solana have $775 million. 

More data shows that the futures open interest has tumbled in the past few months. It has dropped to $1 billion, down from $5.2 billion in September last year. Falling open interest is a sign that demand from the highly active traders has continued falling. 

The open interest has been in a downtrend after the major liquidation event that happened in October last year. In most cases, falling interest during a downtrend is a sign that demand is waning.

The weekly chart shows that the DOGE price has slumped in the past few months. It dropped below the important support level at $0.10, confirming a bearish outlook. 

Most notably, the coin has formed a multi-year head-and-shoulders pattern. The head is at $0.4820, while the right shoulder is at $0.3073, and the left one is at $0.2290. 

Dogecoin has remained below the 50-week and 100-week Exponential Moving Averages. It has dropped below the key support level at $0.1296, its lowest level in April last year.

Therefore, the coin will likely continue falling as sellers target the key support level at $0.050. The bearish outlook will become invalid if it moves above the key resistance at $0.1300 will invalidate the bearish outlook.