Dogecoin faces drop below $0.08 after Bitwise ETF closure

Key takeaways

• Dogecoin is trying to recover after losing roughly 3% in each of the past two sessions.
• Bitwise will halt trading in its BWOW Dogecoin ETF on October 14.
• A fall under $0.0801 could push DOGE toward $0.0745 and possibly $0.0673.
• Dogecoin needs to regain the $0.0845–$0.0904 resistance zone to turn its prospects more positive.

On Friday, Dogecoin (DOGE) moved slightly higher after two straight trading days that each saw losses of about 3%.

Even with the small gain, DOGE has a bearish short-term outlook because institutional interest is fading and momentum indicators suggest ongoing selling pressure.

The $0.0800 level is now crucial, and a break below it could send the meme coin toward much lower support areas.

Bitwise confirms Dogecoin ETF will be shut down

On Thursday, Bitwise said it would wind down its Dogecoin exchange-traded fund, BWOW, as part of a move to simplify its product offerings and adjust to shifting investor preferences.

The fund will make its last trades on October 14, after which it will stop operating and start converting its DOGE holdings into cash.

Bitwise expects the liquidation to be finished by October 22, and the leftover cash will go to shareholders.

According to SoSoValue, BWOW had roughly $687,730 in net assets as of Thursday.

Converting the fund's holdings during the wind-down could create a bit of selling pressure on Dogecoin, though the fund is much smaller than other investment products focused on DOGE.

Grayscale's GDOG ETF holds about $8.61 million, and the 21Shares TDOG fund runs roughly $2.53 million.

The difference shows just how small BWOW is and likely explains why Bitwise decided to pull that fund from its lineup.

Dogecoin is below key moving averages

On Friday around the time of writing, Dogecoin was trading just above $0.0800 yet remained under several important technical markers.

On the four-hour chart, DOGE sits under its 100-period EMA at $0.0857 and its 50-period EMA at $0.0870. Being beneath both indicators confirms the token's bearish near-term setup.

The meme coin is also testing its 200-period EMA near $0.0827, which is now acting as a dynamic support level.

If DOGE breaks below the 200-period EMA, it could head toward the recent low of $0.0801.

Should buyers not defend that psychological support, the next downside target becomes the 127.2% Fibonacci extension at $0.0745. A deeper move could bring the 161.8% extension near $0.0673 into view.

A fall from $0.0801 to $0.0673 would mean a drop of about 16%.

Dogecoin's Relative Strength Index on the four-hour chart is near 35, just above oversold territory.

That low reading points to strong bearish momentum but also indicates that selling might be close to running out. Still, the indicator has not given a confirmed turning point.

The Moving Average Convergence Divergence indicator continues to move lower below its zero line, strengthening the view that downward pressure is still in charge.

To start a meaningful recovery, Dogecoin first needs to climb above the 78.6% Fibonacci retracement at $0.0845.

The next resistance levels are the 100-period EMA near $0.0857 and the 50-period EMA at $0.0870. A bigger barrier sits around $0.0904, which matches the 50% Fibonacci retracement.

A sustained close above $0.0904 would reduce the bearish case. Until that happens, DOGE is still at risk of dropping below $0.0800.