Bit Origin Buys 40.5M DOGE with $500M Funding to Push Price Toward $0.29

A China-based pork processing company and Bitcoin miner, Bit Origin, has acquired 40.5 million Dogecoin (DOGE) for its crypto treasury, signaling a strategic shift to influence the altcoin’s market dynamics. The firm announced the purchase on July 18, following its earlier declaration on July 17 to pursue becoming the largest publicly traded DOGE holder. To fund this initiative, Bit Origin has secured $500 million through share sales and debt offerings. The acquisition has sparked analysis on its potential to alter DOGE’s price trajectory, currently trading within a $0.14–$0.29 range [1].

Dogecoin’s recent price action has shown consistent buying pressure near $0.14 and selling resistance at $0.29. On July 18, the price dipped to the 20-day simple moving average (SMA) at $0.21 after hitting $0.29. Subsequent rebounds faced resistance at $0.26 and $0.29, with analysts suggesting a sustained break above these levels could trigger a new upward trend targeting $0.44. Conversely, a decline below the 20-day SMA would likely prolong the current consolidation phase [1].

Short-term technical indicators highlight bearish dominance. The 20-day SMA for DOGE has begun to trend downward, while the relative strength index (RSI) entered negative territory. This suggests immediate selling pressure may dominate, with profit-taking rallies likely to be met with resistance. A critical test for bulls lies in a sustained close above the 20-day SMA, which could indicate diminishing bearish momentum. Such a move might push the price toward $0.27 and subsequently $0.29, where strong resistance is anticipated [1].

Bit Origin’s treasury acquisition introduces a new variable in DOGE’s supply dynamics. By locking up a significant portion of the circulating supply, the firm may reduce short-term liquidity, potentially driving upward price pressure. However, the extent of this effect remains contingent on broader market sentiment and whether other institutional players adopt similar strategies. The company’s stated goal underscores its confidence in DOGE’s utility and long-term value, though market reactions to such initiatives vary.

Historically, treasury purchases have elicited mixed responses in the crypto market. While some projects experience short-term price spikes, sustainability often hinges on fundamentals and adoption trends. DOGE’s speculative nature complicates its trajectory, as much of its price action is driven by retail sentiment rather than utility-based demand. Bit Origin’s institutional involvement, however, could lend credibility to DOGE’s narrative as a speculative asset or store of value.

Current market focus remains on key technical levels. A break above $0.29 could validate the bullish case, potentially unlocking a path to $0.44. Conversely, failure to clear $0.29 or a pullback below $0.21 would reinforce the range-bound pattern. Investors are advised to monitor on-chain metrics such as volume shifts and wallet activity for further directional clues.

Source: [1] [DOGE news update: Treasury purchases may kickstart rally to $0.29] [https://cointelegraph.com/news/doge-news-update-treasury-purchases-may-kickstart-rally-to-dollar0-29]