Dogecoin Price Tests $0.22 Support After Sharp Drop From $0.3072 Highs

• DOGE tests $0.22 support as analysts warn $0.20 could be the next critical level.
• Whales sold 40M DOGE while $3.49M liquidations added pressure to short-term trading.
• ETF inflows of $26M and whale buys show rising institutional demand despite bearish bias.

Dogecoin is trading around $0.2265, attempting to recover after a sharp drop from recent highs near $0.3072. The price chart shows DOGE testing key support close to $0.22, while the next major support is located near $0.20. At the time of writing, DOGE was priced at $0.2305.

Dogecoin Price Testing Key Levels

Dogecoin saw a strong rally in early September, moving from $0.24509 to $0.3072 before losing momentum. After reaching this peak, the price reversed direction and began a consistent decline, forming lower highs and lower lows. 

According to analysis prepared by BitGuru, this sequence of moves indicated the end of the bullish phase and the start of corrective pressure. The $0.22 level has become an important area, attracting attention in recent sessions. If this level breaks, analysts see $0.20 as the next point where buyers may step in. Historical data shows that $0.20 has previously acted as a support floor. 

According to Ali Charts, whales sold around 40 million DOGE in the past 24 hours. Combined with falling trading volumes, this has increased selling pressure in the short term. Data from Coinglass reported $3.49 million in total liquidations across the last 24 hours, with both long and short positions affected.

Institutional Demand and ETF Developments

Institutional activity has provided an additional layer to current trading conditions. The Dogecoin ETF saw $26 million in liquidity inflows within its first week. According to an observation by Ether Nasyonal, this strong debut supported confidence that institutional interest in DOGE is expanding despite broader market weakness.

Large investors purchased over $13 million worth of DOGE on Binance spot markets, while OKX recorded more than $9 million in net buys. At the same time, whales executed $16 million in net longs on Binance perpetual markets. However, data revealed that OKX maintained over $48 million worth of short positions, showing that bearish positioning remains present.

This combination of ETF inflows, whale accumulation, and short exposure reflects a market that is balanced between cautious sentiment and potential recovery. Analysts suggest that if DOGE holds $0.22 and pushes above $0.245–$0.250, it could retest higher resistance zones in the coming weeks.