Dogecoin risks breakdown below $0.08 as Bitwise shuts DOGE ETF

Key Takeaways

• Dogecoin is attempting to rebound following two consecutive sessions of roughly 3% losses.
• Bitwise will halt trading for its BWOW Dogecoin ETF on October 14.
• A drop past $0.0801 could drag DOGE down to $0.0745, with further risks of hitting $0.0673.
• To improve its technical outlook, Dogecoin must reclaim the $0.0845–$0.0904 resistance zone.

Dogecoin (DOGE) posted minor gains on Friday, trying to stabilize after registering losses of around 3% in each of the prior two sessions.

Even with this slight uptick, the short-term outlook for DOGE remains bearish. Institutional interest is cooling, and momentum signals indicate persistent selling pressure. The $0.0800 mark represents a crucial level; falling below this threshold could trigger a steeper slide toward much lower support zones.

Bitwise to Liquidate Its Dogecoin ETF

On Thursday, asset manager Bitwise revealed plans to wind down its Dogecoin exchange-traded fund, BWOW. The decision is part of a broader strategy to refine its product offerings and adapt to shifting investor appetite.

The fund’s final day of trading is set for October 14. Following the halt, the fund will cease operations and begin liquidating its DOGE holdings into cash.

Bitwise intends to complete this liquidation process by October 22, at which point the remaining cash proceeds will be distributed to shareholders.

Data from SoSoValue shows that BWOW held roughly $687,730 in net assets as of Thursday.

While the conversion of these assets during liquidation might generate some mild selling pressure on Dogecoin, the fund’s size is relatively small compared to rival DOGE investment vehicles.

For comparison, Grayscale’s GDOG ETF commands approximately $8.61 million in assets, while the 21Shares TDOG fund manages about $2.53 million. This stark valuation gap underscores the small scale of BWOW, likely driving Bitwise’s decision to discontinue the product.

Dogecoin Struggles Below Crucial Moving Averages

At the time of writing on Friday, Dogecoin was trading just north of the $0.0800 mark but remained pinned below several critical technical benchmarks.

On the four-hour chart, DOGE is trading under its 100-period Exponential Moving Average (EMA) at $0.0857 and its 50-period EMA at $0.0870. Staying below these key levels highlights the token’s bearish short-term structure.

The meme coin is currently testing its 200-period EMA near $0.0827, which serves as immediate dynamic support.

A decisive break below this 200-period EMA could quickly drag Dogecoin down to its recent low of $0.0801.

If buyers fail to defend this psychological support level, the next downside target rests at the 127.2% Fibonacci extension level of $0.0745. A deeper selloff could bring the 161.8% extension level near $0.0673 into play.

Sinking from $0.0801 down to $0.0673 would mark a sharp decline of roughly 16%.

Meanwhile, the Relative Strength Index (RSI) on the four-hour chart is hovering near 35, placing it just above the oversold threshold.

While this low reading points to heavy bearish momentum, it also suggests that the selling pressure may be nearing exhaustion, though a clear trend reversal has yet to materialize.

Additionally, the Moving Average Convergence Divergence (MACD) indicator continues to trend downward below its zero line, confirming that sellers still control the market’s direction.

For Dogecoin to stage a convincing recovery, bulls must first push the price past the 78.6% Fibonacci retracement level at $0.0845.

From there, the token faces overhead resistance at the 100-period EMA ($0.0857) and the 50-period EMA ($0.0870). A more formidable obstacle lies around $0.0904, which aligns with the 50% Fibonacci retracement level.

Only a sustained close above $0.0904 would invalidate the prevailing bearish outlook. Until that happens, DOGE remains highly susceptible to breaking down below $0.0800.