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Dogecoin price flags multi-year H&S pattern as key demand metrics plunge

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Dogecoin price is stuck in a technical bear market, a trend that may continue as key metrics like exchange-traded fund inflows and futures open interest slip.

Summary

  • Dogecoin price has formed a large head-and-shoulders pattern.
  • Data shows that spot DOGE ETFs have had no inflows in weeks.
  • Dogecoin’s futures open interest has continued falling.

Dogecoin (DOGE) token was trading at $0.09610, down by 80% from its highest level in November 2024. It is hovering near its lowest level since September 2024.

DOGE, the biggest meme coin in the crypto industry, has dropped, mirroring the performance of Bitcoin (BTC) and other altcoins. It has also mirrored the performance of other meme coins like Shiba Inu and Bonk.

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Third-party data shows that Dogecoin’s demand has waned in the past few months. A good example of this is in Wall Street, where DOGE ETFs by companies like Grayscale, 21Shares, and BitWise have not attracted any inflows since February 3. 

Their cumulative inflows this month is just $252k, with their assets being $9 million. In contrast, spot XRP ETFs have over $1 billion in assets, while Solana have $775 million. 

More data shows that the futures open interest has tumbled in the past few months. It has dropped to $1 billion, down from $5.2 billion in September last year. Falling open interest is a sign that demand from the highly active traders has continued falling. 

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The open interest has been in a downtrend after the major liquidation event that happened in October last year. In most cases, falling interest during a downtrend is a sign that demand is waning.

Dogecoin price prediction: technical analysis

dogecoin rice
DOGE price chart | Source: crypto.news 

The weekly chart shows that the DOGE price has slumped in the past few months. It dropped below the important support level at $0.10, confirming a bearish outlook. 

Most notably, the coin has formed a multi-year head-and-shoulders pattern. The head is at $0.4820, while the right shoulder is at $0.3073, and the left one is at $0.2290. 

Dogecoin has remained below the 50-week and 100-week Exponential Moving Averages. It has dropped below the key support level at $0.1296, its lowest level in April last year.

Therefore, the coin will likely continue falling as sellers target the key support level at $0.050. The bearish outlook will become invalid if it moves above the key resistance at $0.1300 will invalidate the bearish outlook.

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Crypto World

South Korea Tightens Crypto Rules with 5-minute Asset Verification Mandate

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South Korea Tightens Crypto Rules with 5-minute Asset Verification Mandate

South Korea has ordered all crypto exchanges to reconcile their internal ledgers with actual asset holdings every five minutes after an inspection uncovered weaknesses in internal controls.

The directive was announced on Monday by the Financial Services Commission (FSC) after a meeting with top crypto exchanges and the Digital Asset Exchange Alliance (DAXA), during which they discussed the findings of an emergency inspection triggered by the Bithumb payout incident.

The inspection found that three of the country’s five major exchanges were reconciling balances only once every 24 hours, limiting their ability to respond quickly to discrepancies. Systems designed to halt trading during major mismatches were also found to be insufficient, raising concerns about how exchanges would handle large-scale errors.

In February, Bithumb mistakenly distributed 620,000 Bitcoin (BTC) to 249 users during a promotional event. The exchange later announced that it recovered 99.7% of the funds the same day. The remaining 0.3%, 1,788 BTC that had already been sold, was covered using company reserves.

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Related: Bithumb seeks to reappoint CEO despite recent controversies: Report

South Korea mandates five-minute asset checks

Under the new measures, exchanges must implement automated ledger-to-wallet reconciliation systems operating on a five-minute cycle. They will also be required to introduce defined criteria for triggering automatic transaction halts in the event of significant discrepancies.

Beyond reconciliation, regulators are pushing for sweeping changes to internal operations. High-risk processes like promotional payouts will require stronger oversight, including third-party cross-checks and multi-level approval systems. Exchanges will also need to separate high-risk accounts and implement automated verification tools for payments.

Top Korean crypto exchanges. Source: CoinGecko

Furthermore, external audits will shift from quarterly to monthly, while disclosures will expand to include detailed asset balances by wallet and ledger.

“The financial authorities and the DAXA plan to complete the rule changes needed to implement the improvement measures within April this year,” the FSC wrote.

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Related: South Korean brokerage Korea Investment & Securities eyes Coinone stake: Report

Bithumb delays IPO to post-2028

Last week, Bithumb announced it is now targeting an IPO after 2028, marking another delay from its earlier 2025 plans as it works through restructuring and regulatory pressure. The exchange said it will focus on strengthening accounting policies and internal controls through 2027, following an advisory agreement with Samjong KPMG.

Meanwhile, Naver Financial has also delayed its planned share swap with Dunamu by about three months, now targeting a shareholder vote on Aug. 18 and completion by Sept. 30.

Magazine: South Korea gets rich from crypto… North Korea gets weapons

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