DOGE Drops 8% on Heavy Volume But Institutional Buyers Accumulate at $0.21

DOGE fell 8% to $0.21 from $0.22 in the 24 hours leading up to August 1, marking one of its largest daily declines in recent weeks. The sharp drop came amid a surge in trading volume, which reached 1.25 billion DOGE, significantly above the 24-hour average of 365 million. The increased volume suggests intensified liquidation activity, particularly during the final hours of the session, with a notable spike at midnight [1]. Despite the bearish price movement, on-chain data indicates that large holders may be quietly accumulating the token at the key 21-cent level [3].

Institutional wallets were observed acquiring 310 million DOGE during the selloff, reinforcing the notion that long-term investors are using the downturn as an opportunity to accumulate at discounted prices [1]. Whale activity further supports this pattern, with over 130 million DOGE tokens moved by large addresses within the last 24 hours, suggesting strategic accumulation strategies [3]. This behavior is often interpreted as a sign that market participants expect a potential rebound in the near future.

From a technical perspective, the price action revealed a wide $0.03 trading range between a high of $0.23 and a low of $0.20. Resistance at $0.23 proved firm, preventing a sustained move higher, while support at $0.21 held multiple times during the final hour of trading, indicating increased buying interest at that level [1]. A modest 1% recovery in the final hour, from $0.21 to $0.21, further suggests that short-term selling pressure may be waning [1].

Analysts are closely watching whether DOGE can maintain support above the $0.21–$0.20 range in the coming sessions. A successful defense of $0.21 could set the stage for a potential rebound toward $0.26, with further upside potential to $0.36. However, a breakdown below 21 cents could trigger more aggressive selling and signal a deeper correction [3]. Broader market conditions also play a critical role, as macroeconomic uncertainty and mixed inflation signals continue to weigh on investor sentiment across the crypto space [1].

The recent price action underscores the volatile nature of meme tokens like DOGE, which are often driven by sentiment, retail participation, and whale behavior. While the immediate outlook remains uncertain, the signs of accumulation suggest that long-term holders are not necessarily bearish on the asset. The coming days will be pivotal in determining whether this selloff represents a buying opportunity or the start of a more extended bearish phase [1][2][3].

Source:

[1] DOGE Price News: Dogecoin Suffers 8% Drop, Shows ... (https://www.coindesk.com/markets/2025/08/01/doge-suffers-8-drop-but-signs-of-institutional-accumulation-at-21-cents)

[2] DOGE Suffers 8% Drop but Signs of Institutional ... (https://finance.yahoo.com/news/doge-suffers-8-drop-signs-042510716.html)

[3] RSS Crypto - Cryptocurrency News feed aggregator (12370) (https://rsscrypto.com/)