Dogecoin Price Forecast: DOGE Holds Crucial Support Despite Surging Selling Pressure

Dogecoin (DOGE) price is down by 2.48% today, August 31, to trade at $0.082 at the time of writing. The drop comes amid an increase in selling pressure as retail traders rush to book profits following the recent gains. Still, Dogecoin price is defending crucial support in a falling triangle pattern after inflows to DOGE ETFs returned last week.

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Dogecoin Price Faces Surging Sell-Side Pressure

Data from CoinGlass shows that Dogecoin has seen more selling pressure than buying pressure for the last three straight days since August 28. During this time, the value of DOGE sold has been $21 million more than the value of DOGE purchased.

The derivatives market also suggests that futures traders are booking profits because the open interest has dropped from $1.58 billion to $1.27 billion at the time of writing. This drop suggests that the long buyers who entered positions when Dogecoin price was surging are now closing them.

The long/short reading of 0.87 shows that there are currently more short accounts than long accounts. It suggests that most of the traders that are now present in the futures market expect the price of the meme coin to drop rather than gain.

CoinGlass also shows that the futures trading volumes for Dogecoin are up by 99% to $1.34 billion. Meanwhile, long liquidations have come in at $5.96 million today, August 31, with this being higher than the $833,000 in short liquidations.

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Dogecoin ETFs Record $800,000 Inflows in Two Weeks

Data from SoSoValue shows that Dogecoin ETFs have recorded two straight weeks of inflows. The inflows to these products have now reached $800,000 since August 17, as demand from institutions rises.

Dogecoin ETFs have now amassed $12.33 million in net assets, with this being equal to 0.09% of Dogecoin’s market cap of $12.87 billion.

The inflows seen by these ETFs in August mark a reversal from the worst month of trading for Dogecoin ETF products in July, after the outflows during the month reached $525,000.

DOGE Price Tests Triangle Support

The price of Dogecoin is moving within a descending triangle pattern on the four-hour chart. This triangle suggests that a trend is changing from a bearish one to a bullish one.

The support of this triangle pattern is now at $0.082. If the price closes below this support, it could record a 15% decline that will push it to the August low of $0.069.

The RSI reading of 36 supports a bearish long-term Dogecoin price prediction. The RSI line is also moving below the signal line, suggesting that the bearish momentum is becoming strong.

The AO bars that are red and growing in length also suggest that the momentum is favoring bears. This supports the bearish thesis that Dogecoin price might drop to $0.069 unless the sentiment across the broader crypto market shifts to bullish.