Dogecoin declined sharply by 8% from $0.22 to $0.21 between July 31 at 03:00 UTC and August 1 at 02:00 UTC, marking one of the steepest daily drops this month. The price movement occurred within a wide $0.03 range, with resistance at $0.23 capping upside attempts and support emerging near $0.21. Trading volume spiked to 1.25 billion DOGE during the final hours of the session—over three times the 24-hour average—signaling heightened liquidation activity among leveraged traders.
Despite the sell-off, on-chain data revealed that institutional wallets added 310 million DOGE to their balances during the downturn, suggesting accumulation amid market weakness. Bit Origin, for example, contributed 40 million DOGE to its treasury as part of a $500 million corporate diversification program. This contrast between liquidations and strategic buying underscores a bifurcated market structure where long-term investors leverage price dips to build positions.
Price action analysis indicated potential exhaustion of selling pressure in the immediate term as DOGE consolidated near $0.21 support. The rejection around $0.21 resistance and narrowing price band in the final trading hour signaled a possible base formation. Key near-term levels include resistance at $0.23 and support at $0.20. Market participants will watch for follow-through accumulation or renewed macro catalysts, including U.S. inflation data and Asian equity risk sentiment, to determine if DOGE can sustain a recovery above short-term thresholds.
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