Dogecoin (DOGE) has experienced a notable 8% drop over the past 24 hours, with its price slipping from $0.22 to $0.21, marking one of the sharpest declines seen this month. This intense price action unfolded within a broad $0.03 range, reaching a high of $0.23 and a low of $0.20, as traders grappled with significant resistance at the upper bound and capitulation near the session’s close.
A Volatile Night for DOGE
The cryptocurrency witnessed a surge in trading volumes during the final hours of the trading session, particularly at midnight, when trading activity skyrocketed to 1.25 billion DOGE. This level is notably above the 24-hour average volume of 365 million, hinting at significant liquidation activity likely igniting a cascade of sell orders, especially across leveraged positions. This mirrors recent trends seen in other cryptocurrencies, as highlighted in our report on XRP and Dogecoin erasing explosive weekly gains.
According to crypto analyst Jenna Hayes, “Such spikes in volume often indicate a rush to the exits by short-term traders, but the underlying interest from larger players remains a point of intrigue.”
Institutional Interest Amidst the Chaos
Despite the tumultuous price swings, institutional players appear to be quietly accumulating DOGE amid the downturn. Institutional wallets reportedly acquired 310 million DOGE during this correction. This suggests that while retail traders may have been spooked, larger entities are viewing the dip as a buying opportunity.
Bit Origin, a prominent player in the crypto investment space, added 40 million DOGE to its treasury. This move is part of a broader $500 million corporate diversification strategy, signaling confidence in DOGE’s long-term potential despite short-term volatility.
Navigating a Choppy Crypto Market
The broader cryptocurrency landscape remains under pressure, primarily due to macroeconomic uncertainties. Inflation concerns and ambiguity regarding interest rate paths continue to weigh on short-term sentiment. As traders keep a close eye on these developments, DOGE’s price action reflects a microcosm of the larger crypto market’s challenges. This is consistent with trends observed in Ether and Dogecoin leading modest market gains amidst broader economic signals.
DOGE attempted to test the $0.23 mark around mid-morning on July 31 but failed to sustain the momentum, with selling intensifying through the afternoon and evening. The most significant single-hour drop occurred just past midnight, with the price bottoming out at $0.20 before stabilizing around $0.21.
In the final trading hour, DOGE managed a slight rebound from $0.21 to $0.21, logging a modest 1% gain. This movement, albeit limited, came on balanced volume and suggests a short-term stabilization—perhaps a precursor to a more sustained recovery.
What Lies Ahead for DOGE?
Traders are now watching closely to see if DOGE can maintain its footing above the critical $0.21–$0.20 support range in the coming sessions. There’s keen interest in whether accumulation by institutional wallets during the selloff will translate into a broader price recovery.
Additionally, macroeconomic signals, including U.S. inflation commentary and Asian equity risk sentiment, could play a pivotal role in shaping broader crypto appetite. DOGE’s inclusion in Bit Origin’s strategic allocation adds another layer of intrigue, raising questions about potential future treasury demand catalysts.
As the crypto community navigates these choppy waters, the lingering question remains: can DOGE defy the odds and stage a comeback, or will macroeconomic headwinds continue to exert pressure? The coming weeks will be telling.
Source
This article is based on: DOGE Drops 8%, Shows Signs of Institutional Accumulation at 21 Cents
Further Reading
Deepen your understanding with these related articles:
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- Crypto Market Retreats Amid Record Liquidity and Signs of Froth
- Crypto Inflows Near $2 Billion as Ethereum Outshines Bitcoin in Altcoin-Led Rally
Steve Gregory is a lawyer in the United States who specializes in licensing for cryptocurrency companies and products. Steve began his career as an attorney in 2015 but made the switch to working in cryptocurrency full time shortly after joining the original team at Gemini Trust Company, an early cryptocurrency exchange based in New York City. Steve then joined CEX.io and was able to launch their regulated US-based cryptocurrency. Steve then went on to become the CEO at currency.com when he ran for four years and was able to lead currency.com to being fully acquired in 2025.
