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Key Takeaways:
- Dogecoin dropped to $0.20, logging a 10% weekly decline and July’s steepest intraday loss.
- Despite the sell-off, DOGE remains in a long-term uptrend channel with bullish technical signals.
- Institutional investors bought over 300 million DOGE during the dip, signaling growing confidence.
Dogecoin (DOGE) experienced a sharp intraday decline this week, falling nearly 5% in 24 hours to hit $0.20—its lowest level in July. The meme-inspired cryptocurrency is now down 10% on the week, but despite the selloff, analysts remain optimistic about its broader trajectory.
Sell-Off Triggers Mass Liquidations, But Activity Surges
DOGE’s price fell from a high of $0.23 amid heavy selling and stop-loss triggers across major exchanges. Over 1.25 billion DOGE changed hands as panic sell-offs intensified, signaling a capitulation phase. However, this spike in volume indicates that active participants are still engaged—and some are buying the dip.
Notably, institutional activity surged during the drop. Wallet data revealed that large holders accumulated over 310 million DOGE during the correction, including Bit Origin’s 40 million DOGE purchase as part of its $500 million allocation into digital assets.
Long-Term Uptrend Channel Holds Firm
Despite short-term volatility, Dogecoin remains well within a multi-year ascending channel that dates back to 2014. According to respected analyst Trader Tardigrade, DOGE currently sits in the lower-middle portion of this channel—a region that historically precedes extended rallies.
Tardigrade also highlighted Dogecoin’s third consecutive bullish engulfing monthly candle, a rare pattern that often signals an upcoming breakout. As long as DOGE holds this channel, its long-term bullish structure remains intact.
Falling Wedge Hints at Near-Term Reversal
Crypto analyst Ali Martinez identified a falling wedge on DOGE’s 1-hour chart—a bullish pattern that could spark a short-term reversal. A breakout above the $0.229–$0.230 resistance zone could target $0.265, while key support remains at $0.210.
This technical setup, combined with strong on-chain signals and rising institutional interest, suggests DOGE’s current weakness could mark the beginning of a new accumulation phase.
While Dogecoin’s recent 10% weekly drop may raise eyebrows, its sustained long-term uptrend, bullish technical patterns, and institutional accumulation tell a different story. With volatility still present in the broader crypto market, DOGE appears poised for a potential rebound.
Also Read: Critical Levels Dogecoin Must Hold Now — Is $0.22 the Ultimate Support?
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses
I’m your translator between the financial Old World and the new frontier of crypto. After a career demystifying economics and markets, I enjoy elucidating crypto – from investment risks to earth-shaking potential. Let’s explore!
