Dogecoin ETF fund inflows rebounded briefly and then fell back

Dogecoin ETF is still difficult to win the favor of investors.

After a brief subscription boom, institutional interest quickly faded, which once again confirmed the difficulty of such products to gain a foothold in the market. As asset managers try to expand the cryptocurrency ETF product line beyond Bitcoin and Ethereum to other areas, funds linked to memoin have exposed the limitations of this diversification strategy. This new phase of stagnation has raised questions about whether investors truly favor these unconventional financial instruments.

A brief review of

After the single-day net inflow of US$345.13 million on July 21, the daily net inflow quickly returned to zero on July 22, 23, and 24. Despite frequent pauses, ETFs recorded their first positive week since June 18, with total inflows reaching US$12.12 million. DOGE prices fell 0.17% to US$0.07 in 24 hours, approaching their lowest level since November 2023. Open interest in derivatives rose to $1.1 billion, indicating that short-term short positions are accumulating.

The illusion of institutional funds returning to dogcoin ETF

The Dogecoin ETF suddenly fell into a stage of complete stagnation again, breaking the hope of a continued return of institutional funds. Summary data shows that recent activities have shown extremely distinctive characteristics: there were no net inflows for three consecutive days on July 22, 23, and 24; a sudden injection of US$345.13 million was seen on July 21, breaking the zero-inflow status that has lasted for many days since July 6; in terms of weekly transaction volume, this is the first week since the week of June 18 when net capital inflows were positive. Although daily dynamics seem bleak, the overall assessment reveals a more balanced financial structure. Experts pointed out that for recently launched products or varieties with limited trading volume (especially products that track memin), it is not uncommon to have zero net inflow days. Despite the weekend's drying up, the cumulative net balance of ETFs remained firmly above the symbolic threshold of $12 million.

Market divisions intensify

In addition to the weak performance of listed products, the spot market and futures sectors have released highly contradictory signals, reflecting market uncertainty. Dogecoin prices are under pressure from the overall crypto market, falling slightly by 0.17% in the past 24 hours and trading at around US$0.07. The pullback comes after spot prices hit their lowest level since November 2023 on Thursday. The weakness in the spot market shows a lack of aggressive short-term buyers to support prices. In contrast to the fall in spot prices, open interest in DOGE futures continued to climb, reaching US$1.1 billion. The simultaneous rise in open interest contracts and the decline in spot prices are a special signal for financial experts. The combination of growing open interest and plunging prices suggests that investors are accumulating large amounts of short positions, clearly betting that the current correction trend will continue further.

Technical Indicators

Although the derivatives market is dominated by shorts, purely bearish market interpretations are tempered by technical signals that point to the possibility of long-term reversals. Crypto analyst Ali highlighted a chart pattern that has attracted particular attention from experts: the TD Sequential indicator has just confirmed a clear buy signal on the monthly chart of memin. This rare signal comes at a critical moment-the token is approaching a key strategic support area near $0.056. If this historic technical bottom can curb selling pressure and trigger a buyer reaction, forecasts suggest a first-round rally target of $0.16. If this trend is confirmed, a larger bullish target is around $0.45.

The current trend of dogcoin requires extremely cautious and careful observation. On the one hand, ETFs frequently experience zero inflows and an increase in short positions, reflecting real short-term skepticism. On the other hand, buy signals in key support areas on the monthly chart prove that as long as the key defense line of $0.056 is held, the structural rebound potential remains technically intact.