DOGE Remains Range-Bound Amid Significant ETF Inflows

Dogecoin Price Dips Amid Market Volatility Following US Jobs Report

Dogecoin (DOGE) is currently trading lower, reflecting increased volatility after the release of the latest US Non-Farm Payrolls (NFP) report.

US Jobs Data Triggers Crypto Market Reaction

The Bureau of Labor Statistics (BLS) reported that US NFPs increased by 50,000 in December, falling short of market expectations of 60,000. The unemployment rate decreased to 4.4%, below the projected 4.5%. These figures follow November’s revised number of 56,000 (originally reported as 64,000). The BLS noted that combined employment for October and November was 76,000 lower than previously reported.

The cryptocurrency market reacted with heightened volatility. Dogecoin experienced a 2% intraday loss, trading at $1.1430 on Friday. Bitcoin (BTC) is testing the critical $90,000 level, while Ethereum saw a slight decrease but remained above $3,000.

Dogecoin’s Decline: Retail Demand and ETF Inflows in Focus

Dogecoin’s derivatives market is showing signs of weakness after a brief surge to $1.96 billion in futures Open Interest (OI) on Tuesday. This increase from $1.55 billion on January 1st coincided with a general rise in risk appetite for crypto assets, including meme coins.

However, macroeconomic uncertainty has weighed on the markets, triggering a sell-off. The OI has since decreased to $1.82 billion on Friday. If this downward trend continues, it could signal weakening retail demand, making a price recovery more challenging. The possibility of a further decline towards the December low of $0.1161 would increase significantly.

Dogecoin’s Open Interest is declining, suggesting weakening retail demand.

Meanwhile, Dogecoin spot ETFs saw a smaller inflow of nearly $334,000 on Thursday, despite the elevated volatility in the crypto market this week.

Data indicates that US-listed ETF products recorded their largest inflow since launch on January 2nd, at $2.3 million, followed by the second-largest inflow of $1.6 million on Monday. Consistent increases in ETF inflows could boost risk appetite and improve the chances of a Dogecoin recovery.

Technical Analysis: Dogecoin Faces Continued Downward Pressure

Dogecoin is trading at $1.1430 at the time of this report. The 50-day EMA is limiting immediate recovery attempts at $0.1436. The 100-day EMA is trending downwards at $0.1608, maintaining a broader bearish tone along with a declining 200-day EMA at $0.1791.

The Moving Average Convergence/Divergence (MACD) indicator on the daily chart remains in positive territory, with the blue line above the red signal line, suggesting a slight advantage for bulls. However, the positive histogram in green above the midline has begun to contract, indicating that momentum is cooling off.

The Relative Strength Index (RSI) is at 55 (neutral-to-bullish) on the same chart. A decisive push upwards would strengthen the case for a Dogecoin recovery.

The descending trendline from $0.3063 was broken near $0.1276, turning that area into initial support. If buyers defend this price level, attention would shift to resistance at the 200-day EMA near $0.1795. Failure to hold this level would risk a pullback towards the breakout zone.

Key Takeaways:

• Dogecoin’s price is reacting to US economic data.
• Declining retail demand and ETF inflows are impacting Dogecoin’s performance.
• Technical indicators suggest continued downward pressure.

(Technical analysis in this story was written with the assistance of an AI tool)