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Dogecoin entered this week with the expectation of a strong rebound after the launch of its first Dogecoin ETF. However, the market reaction was much weaker than expected.
Rather than derailing a new upward momentum, the launch of the fund seems to have highlighted a lack of appetite among investors.
Grayscale’s Dogecoin Fund (GDOG) had an unexpectedly weak start, fund data shows. On the day of the launch, GDOG recorded no streams – an unusual result for a highly anticipated product. As of Tuesday, total inflows had reached just $1.8 million.
For context, Own Dogecoin With a market cap of $22 billion, Hedera — with a much smaller market cap of $6 billion — recorded $2.2 million in inflows on the first day of Canary Capital’s ( HBR ) HBAR fund.
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The lack of demand suggests the fund hasn’t ignited the enthusiasm many expected. Instead, it revealed a discrepancy between social sentiment and real investor sentiment.
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Indicators on the chain support the weak demand narrative. Dogecoin’s network value to transaction ratio (NVT) has increased – a bearish signal. A high NVT indicates that the valuation is growing faster than the transaction activity, which means that the asset is being exploited without using the proportional network. while Doug continues the trend On social media, this enthusiasm has not translated into an increase in actual activity on the chain.
The current NVT reading indicates that Dogecoin is overvalued compared to its transaction volume. Historically, high levels of NVT precede price corrections, reflecting a decline in usage with increased speculative interest. For DOGE, this disconnect highlights the risk of further decline unless transaction activity resumes.
The price of DOGE needs more to spread
Dogecoin is trading at $0.149 and remains below the $0.151 resistance. This cryptocurrency remains trapped under a sustained downward trend that has lasted for about a month, with little evidence of a breakout.
Due to weak ETF flows and bearish market signals, this downward trend may be difficult to break. Dogecoin can continue It oscillates below the trend line and may fall towards $0.142 if selling pressure increases.
If you can Dogecoin from Attraction New order, the situation changes. A decisive breakout of the downtrend could push the price above $0.162 and possibly towards $0.175. This may overturn the bearish view and pave the way for renewed momentum.
