Dogecoin Risks Falling Below $0.08 as Bitwise Closes BWOW ETF
Key Takeaways
- •Bitwise will end trading in its BWOW Dogecoin ETF on October 14 and distribute liquidation proceeds after completing the process on October 22.
- •BWOW held approximately $687,730 in net assets, substantially less than the $8.61 million in Grayscale’s GDOG and $2.53 million in 21Shares’ TDOG.
- •Dogecoin remained below its 50-period and 100-period four-hour EMAs at approximately $0.0870 and $0.0857, respectively.
- •A confirmed decline below the $0.0800 area could lead DOGE toward $0.0745 and potentially $0.0673.
- •A sustained close above $0.0904 would weaken the current bearish technical outlook.
Dogecoin (DOGE) edged higher on Friday after declining by approximately 3% in each of the previous two sessions. The modest recovery has not changed the cryptocurrency’s bearish near-term structure, as weakening institutional demand and momentum indicators continue to point to selling pressure.
The $0.0800 area has become a critical level for DOGE. A confirmed breakdown could expose the meme coin to lower support levels, including $0.0745 and potentially $0.0673.
Bitwise to liquidate Dogecoin ETF
Bitwise announced Thursday that it will liquidate its Dogecoin exchange-traded fund, BWOW, as it streamlines its product lineup and responds to changing investor demand.
The ETF’s final trading day is scheduled for October 14. After that date, the fund 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.
According to SoSoValue, BWOW held approximately $687,730 in net assets as of Thursday. The conversion of those holdings during the liquidation process could create modest selling pressure for 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 in assets highlights BWOW’s relatively limited scale and may help explain Bitwise’s decision to remove the fund from its product range.
DOGE remains below key moving averages
Dogecoin traded slightly above $0.0800 at the time of writing on Friday but remained below several important technical indicators. On the four-hour chart, DOGE was below its 100-period exponential moving average (EMA) at $0.0857 and its 50-period EMA at $0.0870. Trading below both averages reinforces the token’s bearish short-term structure.
DOGE was also testing its 200-period EMA near $0.0827, which was acting as immediate dynamic support. A confirmed move below that average could send 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 deeper 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 (RSI) stood near 35 on the four-hour chart, placing it just above oversold territory. The low reading reflects significant bearish momentum and may indicate that selling is approaching exhaustion, but the indicator has not produced a confirmed reversal signal.
The Moving Average Convergence Divergence (MACD) indicator continued to decline below its zero line, reinforcing the view that downside pressure remained dominant.
For DOGE to begin a meaningful recovery, it must first break 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 stronger barrier is located 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.
