Dogecoin (CRYPTO: DOGE) has traded within a narrow range this month as demand appears to be fading in the ETF and futures markets. After climbing to $0.1056 in September, the token has pulled back to $0.09400 today. On a more positive note, DOGE has formed a bullish chart pattern, which suggests a rebound could be possible.
DOGE ETF Inflows and Open Interest Have Slipped
Third-party data shows that demand for Dogecoin has continued to fall recently, likely as investors focus on other better-performing coins like Worldcoin and Near Protocol.
Spot Dogecoin ETFs added just $3.16 million in inflows in September. In contrast, the Grayscale Zcash (CRYPTO: ZEC) ETF added $245 million, while the spot XRP (CRYPTO: XRP) funds added $121 million in the same period. This trend is a sign that these funds are not seeing strong demand among American retail and institutional investors.
The same trend is happening in the futures market, where Dogecoin’s futures open interest has dropped to $1.45 billion from the September high of $1.65 billion. The open interest peaked at over $6 billion in September last year.
Meme coins have lost favor among investors in the past few months as many of them have rotated to other areas. For example, privacy tokens like Zcash and Midnight have soared this year, with the former becoming the ninth-biggest cryptocurrency in the world.
Similarly, many AI tokens like Near Protocol, Venice Coin, and Worldcoin have soared because of the ongoing artificial intelligence boom.
Dogecoin Price Prediction
DOGE price chart | Source: TradingView
The four-hour chart shows that DOGE price bottomed at $0.078 in September and then bounced back as the crypto market rebounded. After peaking at $0.1055, it retreated to the current $0.094, while its volume continued falling.
The token has formed a bullish flag pattern, which is made up of a vertical line and a descending channel. It is now in the channel section. It has also held steady above the 50-period Exponential Moving Average (EMA).
Therefore, the coin may rebound in the near term, potentially to the psychological level of $0.100. This view will be confirmed if it jumps above the upper side of the descendinding channel.
Image: Shutterstock
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