Dogecoin risks breakdown below $0.08 as Bitwise shuts DOGE ETF

Key takeaways

• Dogecoin is attempting to recover after two consecutive sessions of roughly 3% losses.
• Bitwise will end trading in its BWOW Dogecoin ETF on October 14.
• A break below $0.0801 could send DOGE toward $0.0745 and potentially $0.0673.
• Dogecoin must reclaim the $0.0845–$0.0904 resistance region to improve its outlook.

Dogecoin (DOGE) edged higher on Friday following two consecutive sessions of losses of approximately 3%.

Despite the modest recovery, DOGE retains a bearish near-term outlook as institutional demand weakens and momentum indicators point to sustained selling pressure. 

The $0.0800 region is now critical, with a breakdown potentially exposing the meme coin to significantly lower support levels.

Bitwise announces closure of Dogecoin ETF

Bitwise announced Thursday that it will liquidate its Dogecoin exchange-traded fund, BWOW, as part of an effort to streamline its product lineup and respond to changing investor demand.

The fund’s final trading day is scheduled for October 14, after which it will cease operations and begin converting its DOGE holdings into cash.

Bitwise expects to complete the liquidation on October 22 and distribute the remaining cash to shareholders.

BWOW held approximately $687,730 in net assets as of Thursday, according to SoSoValue.

The conversion of its holdings during the liquidation process could add modest selling pressure to Dogecoin, although the fund is considerably smaller than other DOGE-focused investment products.

Grayscale’s GDOG ETF holds approximately $8.61 million, while the 21Shares TDOG fund manages around $2.53 million.

The difference highlights BWOW’s relatively limited scale and may explain Bitwise’s decision to remove the fund from its product range.

Dogecoin trades below key moving averages

Dogecoin traded slightly above $0.0800 at the time of writing on Friday but remained below several important technical indicators.

DOGE sits beneath its 100-period EMA at $0.0857 and its 50-period EMA at $0.0870 on the four-hour chart. Trading below both indicators reinforces the token’s bearish short-term structure.

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

A confirmed move below the 200-period EMA could push Dogecoin toward the recent low at $0.0801.

If buyers fail to defend that psychological support zone, the next downside target would be the 127.2% Fibonacci extension at $0.0745. A more substantial correction could bring the 161.8% extension near $0.0673 into focus.

A decline from $0.0801 to $0.0673 would represent a drop of approximately 16%.

Dogecoin’s Relative Strength Index stands near 35 on the four-hour chart, placing it just above oversold territory.

The low reading reflects significant bearish momentum but also suggests that selling may be approaching exhaustion. Still, the indicator has not produced a confirmed reversal signal.

The Moving Average Convergence Divergence indicator continues to decline below its zero line, reinforcing the view that downside pressure remains dominant.

For Dogecoin to begin a meaningful recovery, it must first break above the 78.6% Fibonacci retracement at $0.0845.

The next resistance levels sit at the 100-period EMA near $0.0857 and the 50-period EMA at $0.0870. A stronger barrier awaits around $0.0904, which aligns with the 50% Fibonacci retracement.

A sustained close above $0.0904 would weaken the bearish outlook. Until then, DOGE remains vulnerable to a breakdown below $0.0800.