Dogecoin Price Tests Key Support as DOGE ETF Inflows Rise

Dogecoin price fell 2.48% on August 31, trading near $0.082 as rising selling pressure weighed on the popular meme coin. Retail traders appear to be locking in profits following recent gains, while DOGE is now testing an important technical support level. However, renewed inflows into Dogecoin ETFs could provide some support for market sentiment.

CoinGlass data shows that Dogecoin has experienced stronger selling than buying activity for three consecutive days since August 28. Over that period, the value of DOGE sold exceeded purchases by roughly $21 million, indicating increased profit-taking among investors.

Weakness is also visible in the Dogecoin derivatives market. Futures open interest dropped from $1.58 billion to around $1.27 billion, suggesting traders are closing positions after the recent price rally. DOGE's long-to-short ratio stands at 0.87, meaning short positions currently outnumber longs.

Meanwhile, Dogecoin futures trading volume jumped 99% to $1.34 billion. Long liquidations reached approximately $5.96 million on August 31, significantly exceeding the $833,000 in short liquidations and highlighting growing pressure on bullish traders.

Despite the bearish short-term indicators, institutional demand has shown signs of improvement. SoSoValue data indicates Dogecoin ETFs recorded two consecutive weeks of inflows, totaling about $800,000 since August 17. DOGE ETF products now hold $12.33 million in net assets, equivalent to roughly 0.09% of Dogecoin's $12.87 billion market capitalization. The August inflows represent a turnaround from July, when the products suffered $525,000 in outflows.

Technically, DOGE is trading within a descending triangle on the four-hour chart, with critical support around $0.082. A confirmed break below this level could trigger a roughly 15% decline toward the August low of $0.069.

Bearish momentum remains elevated, with the Relative Strength Index at 36 and the Awesome Oscillator showing expanding red bars. Unless broader crypto market sentiment improves, Dogecoin price could remain vulnerable to further losses, making the $0.082 support level crucial for DOGE's near-term outlook.