Dogecoin Price Forecast: DOGE faces downside risk amid Bitwise ETF liquidation

• Dogecoin edges higher on Friday after four consecutive days of losses totaling a 7% decline so far this week.
• Bitwise plans to liquidate its Dogecoin ETF by October 14 to optimize its product range to meet evolving investor needs.
• The technical outlook for DOGE is bearish, with a focus on the crucial support emerging around $0.080.

Dogecoin (DOGE) ticks higher on Friday after facing two consecutive days of around 3% losses. Institutional demand declines after Bitwise announces the liquidation of its Dogecoin Exchange-Traded Fund (ETF) on Thursday. Dogecoin could see further weakness if buyers fail to hold the $0.0800 support level. 

Bitwise loses confidence in the OG meme coin

Bitwise announced the liquidation of its DOGE ETF (BWOW) on Thursday to optimize its product range and meet evolving investor needs. The last trading day of BWOW is expected to be October 14, after which the fund will cease operations and convert DOGE to cash. Bitwise plans to liquidate BWOW on October 22 and distribute cash to its investors. 

SoSoValue data shows that the net asset value held by BWOW is around $687,730 as of Thursday, likely to fuel selling pressure on October 14. Meanwhile, Grayscale’s and 21Shares’ DOGE-focused ETFs, GDOG and TDOG, hold $8.61 million and $2.53 million, respectively.

Technical outlook: Dogecoin slides onto thin ice as momentum fades

Dogecoin trades above $0.0800 at press time on Friday, projecting a bearish near-term bias. DOGE trades below the 50- and 100-period Exponential Moving Averages (EMAs) at $0.0870 and $0.0857, respectively, reaffirming the bearish bias.

The meme coin tests its 200-period EMA on the four-hour chart around $0.0827, which serves as the immediate support floor. A confirmed breakout below this moving average could target the $0.0801 low. Deeper pullbacks could find lower support at the 127.2% and 161.8% Fibonacci extension levels, measured from $0.1008 to $0.0801, at $0.0745 and $0.0673, respectively.

Momentum shows weakness on the four-hour chart, with the Relative Strength Index (RSI) at 35, hovering just above oversold territory. At the same time, the Moving Average Convergence Divergence (MACD) is declining below its zero line, which together hints that downside pressure persists.

On the topside, immediate resistance emerges at the 78.6% Fibonacci retracement at $0.0845, followed by the 100-period EMA at $0.0857 and the 50-period EMA at $0.0870, with a stronger barrier at the 50% retracement near $0.0904.

(The technical analysis of this story was written with the help of an AI tool. Know more.)