DOGE Faces 8% Decline as Volume Surges
On July 31, DOGE experienced a sharp 8% drop from $0.22 to $0.21 between 03:00 and 02:00 on August 1. This marked one of the steepest daily declines this month, with the price fluctuating within a wide $0.03 range. The cryptocurrency hit a peak of $0.23 and a low of $0.20, facing resistance at the upper bound and capitulation near the session close.
During the final hours of the session, trading volume spiked significantly, reaching 1.25 billion DOGE, well above the 24-hour average of 365 million. This surge in volume suggests increased liquidation activity, potentially triggering cascading sell orders across leveraged positions.
Key News Highlights
- DOGE saw an 8% decline with 1.25 billion in trading volume during overnight trading.
- Resistance at $0.23 remained strong, while $0.21 emerged as short-term support.
- Institutional wallets acquired 310 million DOGE during the correction, indicating accumulation during weakness.
- Bit Origin added 40 million DOGE to its treasury as part of a $500 million corporate diversification program.
- Macro uncertainty continues to pressure broader crypto markets, with inflation and rate path ambiguity affecting short-term sentiment.
Price Action Overview
DOGE tested the $0.23 mark early on July 31 but failed to maintain momentum. Selling pressure intensified throughout the day, leading to a significant drop just after midnight. The price reached a low of $0.20 before stabilizing around $0.21, finding short-term support at this level.
In the final hour of trading on August 1, DOGE saw a modest 1% gain, bouncing back from $0.21 to $0.21. This move, although limited, was accompanied by balanced volume and hints at short-term stabilization. The rejection near the $0.21 resistance and the narrowing price range suggest a potential easing of selling pressure in the immediate future.
Technical Analysis Insights
- DOGE experienced an 8% decline from $0.22 to $0.21, with a $0.03 range between the high and low.
- Resistance at $0.23 was confirmed following unsuccessful breakout attempts.
- Support near $0.21 held multiple times during the final hour, indicating accumulation.
- Trading volume peaked at 1.25 billion around midnight, nearly tripling the daily average.
- Price action narrowed into a tight $0.21–$0.21 range post-recovery, hinting at a potential base formation.
Current Market Trends to Watch
- DOGE’s ability to maintain support above the $0.21–$0.20 range in the upcoming sessions.
- Observing signs of continued accumulation from wallets that acquired during the selloff.
- Monitoring macroeconomic signals, such as U.S. inflation updates and Asian equity risk sentiment, that could impact crypto market sentiment.
- Considering the market reaction to DOGE’s inclusion in Bit Origin’s strategic allocation and potential future treasury demand catalysts.