TLDR
- Dogecoin price has declined 30% from its July peak of $0.28, testing the crucial $0.19 support level
- DOGE maintains a bullish long-term trajectory with a late-July 20/200-day golden cross
- Trading volume reached $1.71 billion (up 26.2% in 24 hours) with market cap exceeding $32 billion
- Majority of traders are going long on DOGE despite recent price weakness
- Short-term forecasts suggest potential dips to $0.19-$0.20 range before possible rebound
Dogecoin has experienced a sharp correction over the past two weeks, dropping nearly 30% from its five-month high. The popular meme coin reached almost $0.28 on July 21 but has since retreated to test the key support level at $0.19.
This pullback comes after DOGE spent most of July in positive territory. The recent decline has brought the price below both the 50-day exponential moving average of $0.206 and the 200-day EMA at $0.207.
Many traders are now watching to see if the $0.19 support level will hold. This price point could potentially serve as a springboard for the next rally.
If DOGE fails to maintain this support on a decisive daily close with high volume, bears might push the price toward the next major support zones at $0.17 and then $0.15. These levels represent 12% to 24% downside from current prices.
On the other hand, a successful bounce from $0.19 would suggest buyers are absorbing selling pressure. This could open the door for a quick rebound toward the 20-day EMA around $0.22.
Technical Indicators Show Mixed Signals
From a long-term perspective, Dogecoin remains in a structural bullish trajectory. A golden cross between the 20-day and 200-day moving averages occurred in late July, typically a positive signal that suggests long-term bulls remain in control.
However, momentum indicators have cooled down. The daily Relative Strength Index has dropped from an overheated reading above 80 to below 50, moving into bearish territory. This signals a sharp decrease in buying momentum.
The Moving Average Convergence Divergence indicator has also turned bearish, confirming the rally has lost steam for now. With buyers taking a pause, many traders are waiting for clearer directional signals.
Should DOGE hold above the $0.19 support while these indicators reset, a rebound toward the $0.22-$0.24 range becomes the most likely scenario. Breaking above $0.24 resistance could then set up a run toward the $0.30 psychological barrier.
Market Sentiment Remains Bullish Despite Pressure
Despite the technical weakness, market sentiment for Dogecoin remains largely positive. According to data from exchanges, long positions still outnumber shorts by a considerable margin.
On Binance, long accounts outnumber shorts 3:1, while OKX shows an even stronger 3.6 ratio. This suggests that despite the recent pullback, larger market participants continue to maintain bullish positions.
Aggregate Dogecoin futures volume decreased 37% to $4 billion over a recent 24-hour period. However, open interest remained stable at around $3 billion, indicating traders are holding their positions rather than exiting the market.
The monthly gain for Dogecoin stands at approximately 25%, bringing the market capitalization above $32 billion. This solidifies DOGE’s position in the top 10 cryptocurrencies by size.
Dogecoin $DOGE is trading within a historically strong buy zone, which has repeatedly triggered major bull runs in past cycles! pic.twitter.com/oYZF8BVKmE
— Ali (@ali_charts) August 7, 2025
Daily trading volume has increased to $1.71 billion, representing a 26.2% jump in 24 hours. This rising activity suggests traders remain engaged despite the recent price correction.
Some algorithmic forecasts suggest Dogecoin could experience further cooling in the immediate term. A 5-day outlook projects potential dips to $0.206 by August 8, with gradual declines possibly reaching $0.199 by August 11.
These projections indicate short-term return opportunities between 3-6% for traders looking to capitalize on the consolidation phase. Many analysts view this potential pullback as a necessary cooling period before the next upward move.
For now, DOGE is holding above the psychological $0.20 support, which many traders view as an important floor price. If trading volume remains elevated and macro conditions stabilize, the path toward $0.25 and beyond remains viable.
DOGE last traded at $0.213, representing a market position that some analysts describe as a historically significant buy zone within a long-standing ascending channel pattern.
