Bitwise plans to shut down its subsidiary Dogecoin ETF, putting additional pressure on the already weak trend of DOGE. The fund will cease trading on October 14th, followed by a suspension of operations, and it will gradually convert its holdings of DOGE into cash. The market is concerned that this process may lead to additional selling pressure.
Bitwise will end the product in mid-October.
Bitwise announced on Thursday that it would liquidate its Dogecoin ETF —— BWOW, citing the need to streamline its product line and respond to changes in investor demands. According to SoSoValue data, as of Thursday, the net assets of the fund were approximately $687,700.
In terms of scale, BWOW is not large among similar DOGE investment products; therefore, the direct impact of its liquidation is expected to be limited. However, against the backdrop of a weakening DOGE, this news may still suppress short-term sentiment.
Around $0.08 has become a short-term focus.
DOGE There was a slight rebound on Friday, following two consecutive trading days of decline of about 3%. However, the price still hovers above $0.08, and there has been no significant improvement in short-term performance.
The article mentions that around $0.08 has become a key level at present. Once it falls below the previous low of $0.0801, DOGE may continue to test lower support areas. If buying pressure cannot stabilize the price at this level, the market might further test $0.0745, or even around $0.0673.
For a rebound, first look at the range of $0.0845 to $0.0904.
The resistance above is also relatively concentrated. If DOGE wants to alleviate the current weakness, it first needs to regain support above $0.0845, and then it must break through the levels of $0.0857 and $0.0870.
A stronger resistance level is around $0.0904. Only by continuously returning above this position can the current bearish trend potentially ease significantly. Before that, DOGE still faces the risk of falling below $0.08 again.
- BWOW Last trading day: October 14th
- Fund net assets: approximately $687,700
- Market focus: Potential selling pressure due to liquidation
