Dogecoin Faces Persistent Selling Pressure Despite Renewed Retail Interest

• Dogecoin is trading under dominant selling pressure, hovering below $0.0700, which has shifted from support to resistance.
• The meme coin has shed 3% of its value in the first week of August, continuing a decline from May highs around $0.1186 .
• Derivatives markets show a massive uptick in perpetual futures open interest, which surged to 16.36 billion DOGE on Thursday .
• This rise in open interest from 15.45 billion DOGE the previous day signals renewed retail participation that may provide price stability .

Dogecoin sits near $0.0690, pinned at a critical decision point within a descending triangle pattern on the four-hour timeframe. The pattern is defined by a falling trendline against a flat support zone near $0.0685, with the price testing the floor repeatedly . Market cap stands at approximately $10.724 billion, with a fully diluted valuation of $11.809 billion .

With circulating supply nearly identical to total supply at roughly 155.39 billion, dilution is not a primary risk for traders . Treasury wallets hold over 802 million DOGE, though no large outflows are currently indicated . Liquidation data reveals mixed signals, with $2.46 million liquidated over the last 24 hours, primarily on the long side .

In the last hour, all liquidations came from longs, suggesting short sellers are feeling heat as buyers defend the triangle floor . Exchange volume is spread across Binance, OKX, and Gate, indicating demand is not concentrated in a single region . Social sentiment has leaned bullish, with reports of whale wallets acquiring roughly 1.7 billion DOGE in a single day .

Why Is Dogecoin Trading Below Key Moving Averages?

Dogecoin trades at $0.0691, maintaining a bearish near-term bias as it holds below the 50-day exponential moving average at $0.0754 . The price also remains below the 100-day EMA at $0.0830 and the 200-day EMA at $0.0986 . The SuperTrend line at $0.0758 reinforces this overhead supply, while the relative strength index near 39 suggests weak demand .

The moving average convergence divergence indicator stays marginally positive, hinting at only tentative downside momentum rather than a strong recovery . Initial resistance appears at the 50-day EMA around $0.0754, closely followed by the SuperTrend barrier at $0.0758 . A daily close above this cluster would be needed to ease immediate bearish pressure .

Such a move would expose the 100-day EMA at $0.0830, ahead of the more distant 200-day EMA near $0.0986 . On the downside, the prior downward trendline break level at $0.0670 acts as the first meaningful support . A sustained move below this floor would likely extend the current decline .

Holding above $0.0670 keeps DOGE consolidating within a depressed but still contained range . Conversely, a breakdown below support at $0.0661 could lead to $0.0632 . Traders are advised to watch for volume confirmation to avoid false breakouts .

Are On-Chain Metrics Signaling a Market Bottom?

Dogecoin bulls are pointing to increasing on-chain activity and bullish technical indicators as signs that the asset may be forming a long-term base. Network activity metrics support this view, with weekly active Dogecoin addresses increasing 16% from 38,000 to 44,000 . This rise indicates growing wallet interaction and potential user engagement despite the price decline .

Crypto analyst CryptoPatel argues the market is overlooking DOGE's long-term setup, identifying an accumulation zone between $0.07 and $0.09 . The bullish thesis suggests upside targets at $0.50, $1, and $2, though it would be invalidated by a high-timeframe close below $0.048 .

Analyst Ash Crypto notes DOGE is at its most oversold levels ever, down 90% from its all-time high. Monthly RSI is more oversold than during the 2022 market bottom, suggesting selling pressure may be exhausting . A breakout above $0.083, where the channel boundary converges with horizontal resistance, would invalidate the downtrend .

Such a breakout could potentially trigger a move toward $0.09 and $0.10 . Conversely, losing $0.067 support would weaken the recovery narrative . The combination of stabilizing market structure, rising network activity, and exhausted selling pressure suggests DOGE may be transitioning from capitulation into accumulation .

Additionally, U.S. DOGE spot exchange-traded funds saw an inflow of $82.64K on August 4, 2026 . This marked the ninth inflow day of the year, further supporting the accumulation thesis . Meanwhile, corporate mining activity continues, with Consensus Mining reporting a $3.1 million non-operating loss in Q2 2026. The loss was driven by unrealized losses in cryptocurrency holdings, contrasting with income in the prior year .