Dogecoin (DOGE) Price: Grayscale’s Massive Bet Collides With Ominous Chart Signals

Grayscale just doubled down on Dogecoin—but the memecoin's charts are screaming 'sell.' Here's why the smart money might be playing a dangerous game.

Warning lights flash as DOGE tests key support

While institutional heavyweights pile in, technicals paint a bleaker picture. The 50-day MA just got violated, RSI's diving into oversold territory, and that 'to the moon' rally? Stuck in Earth's gravity well.

Finance's open secret: When Wall Street adopts a joke, it's already too late. Brace for impact.

TLDR

• Dogecoin (DOGE) dropped from $0.2430 to below $0.2320, breaking a rising channel support
• Price is now trading below the 100-hourly moving average with bears in control
• Grayscale filed an S-1 registration for a spot Dogecoin ETF on August 15
• DOGE open interest surged 7.3% to $3.73 billion despite trading volumes falling 41%
• Technical resistance sits at $0.24 with support levels at $0.22 and $0.20

Dogecoin price has entered a consolidation phase after testing the $0.24 resistance level on Sunday. The world’s largest memecoin by market cap advanced 2% intraday before facing selling pressure.

The recent price action comes as Grayscale filed an S-1 registration statement with the Securities and Exchange Commission on August 15. The filing seeks approval for a spot Dogecoin ETF.

DOGE touched $0.2430 before starting a fresh decline. The price moved below the $0.240 and $0.2350 support levels.

The decline continued as dogecoin broke below a key rising channel. The channel had support at $0.2295 on the hourly chart.

Price action shows DOGE trading below the $0.2320 level. The cryptocurrency also fell beneath the 100-hourly simple moving average.

Current technical indicators point to bearish momentum building. The hourly MACD is gaining strength in the bearish zone.

The Relative Strength Index now sits below the 50 level. This suggests selling pressure is increasing in the short term.

ETF Interest Drives Institutional Focus

Grayscale’s ETF application adds to growing institutional interest in Dogecoin. The filing joins applications from Bitwise and REX-Osprey already under SEC review.

The SEC is also reviewing ETF proposals for other meme coins. These include TRUMP, BONK, and Pudgy Penguins tokens.

Grayscale’s move came one day after the SEC delayed rulings on solana ETF proposals. The regulator postponed decisions from Bitwise, 21Shares, and VanEck until October.

The asset management firm controls $60 billion in assets under management. The filing suggests confidence in potential approval despite recent delays.

Derivatives Market Shows Mixed Signals

Open interest data reveals continued speculative interest in Dogecoin. Doge open interest jumped 7.3% to $3.73 billion on Sunday.

This represents fresh capital inflows of $272 million. The increase occurred even as spot trading volumes dropped over 41%.

Liquidation patterns show active short covering. Bears lost $2.80 million in the past 24 hours compared to $711,000 in long liquidations.

The data suggests bearish positions are being forced out of the market. Short squeezes could provide upward pressure on price.

Technical resistance remains at the $0.24 level. A sustained break above this point could target the $0.27 local high from mid-July.

Support levels sit at $0.22 and $0.20. The $0.22 level aligns with recent consolidation zones.  If the $0.22 support fails, DOGE could retest $0.20. This level attracted buying interest during the early August market rebound.

The RSI currently reads 57.8, indicating room for upward movement. The indicator has not reached overbought territory.

Immediate resistance on any recovery sits NEAR $0.2295. The first major resistance level is at $0.2320.

If DOGE fails to climb above $0.2320, further downside could occur. Initial support on the downside is near $0.2220.

Dogecoin open interest nears $4 billion as institutional ETF filings continue to emerge from major asset managers.