Dogecoin (DOGE) fell sharply by 8% over the past 24 hours, dropping from $0.22 to $0.21 amid a wave of selling pressure. Despite the dip, on-chain data shows institutional buyers quietly accumulating, suggesting smart money is positioning during weakness.
Selloff Fueled by Volume Spike and Liquidations
DOGE price action intensified late on July 31, as volume surged to 1.25 billion DOGE, more than three times its 24-hour average. The largest drop occurred after midnight, driving prices to a session low of $0.20 before rebounding slightly.
Increased trading activity hints at cascading liquidations, likely triggered by over-leveraged longs.
The failure to break resistance at $0.23 earlier in the day added pressure, forcing sellers to capitulate.
Signs of Smart Accumulation Beneath the Surface
While retail sentiment appeared shaken, institutional wallets added over 310 million DOGE during the decline. Bit Origin also revealed a 40 million DOGE purchase as part of a $500 million corporate treasury move—pointing to long-term conviction in DOGE’s potential.
Key support around $0.21 held firm, with multiple tests showing clear accumulation patterns.
Technical Outlook: Stabilizing Above Key Support
- Support Zone: $0.20–$0.21 (tested, holding so far)
- Resistance Zone: $0.23 (confirmed multiple rejections)
- Volume Trend: Peaked at 1.25B DOGE near session low
- Price Action: Tight $0.21–$0.21 range post-selloff = possible base forming
The narrowing range suggests sellers may be exhausted, with price stabilizing around $0.21.
What to Watch This Week
- Can DOGE defend the $0.21–$0.20 range amid continued market uncertainty?
- Will institutional accumulation continue or pause as macro pressures persist?
- Is this base formation a setup for recovery, or just a pause before further downside?
DOGE is holding at a crucial level. While the short-term trend remains shaky, institutional moves suggest long-term support may be building at the current price zone.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.