Dogecoin News Today: Dogecoin Dips 5% Amid Surging Volume and Broader Crypto Sell-Off

Dogecoin (DOGE) has declined over 5% amid a quadrupling in trading volume, signaling heightened volatility and liquidation pressure in the market. The price has fallen from $0.21 to $0.198 in recent sessions, testing key historical support levels that traders are closely watching to determine whether the coin will stabilize or face further downward pressure [1]. This sharp drop coincided with a broader sell-off in the crypto market, as Bitcoin dipped below $115,200, triggering over $630 million in liquidations within a 24-hour period. The sell-off was exacerbated by concerns over U.S. tariff policies, which have reduced risk-on sentiment and led to profit-taking across the market [2].

Market observers note that Dogecoin’s price movements remain strongly correlated with Bitcoin, with a 96% correlation rate reported by analysts. This close relationship has made DOGE particularly vulnerable to macroeconomic pressures and broader crypto market trends. Analysts at Kanalcoin attribute the recent volatility to leveraged trading activity and the sentiment-driven nature of the meme coin. Liquidations of highly leveraged positions reportedly led to over $3 million in losses for a single entity, highlighting the risks associated with aggressive trading strategies [1].

The absence of direct commentary from Dogecoin’s leadership or key opinion leaders such as Elon Musk has contributed to the uncertainty, with traders relying heavily on technical analysis and social sentiment. Whale activity has shown some signs of accumulation, with large holders acquiring over 310 million DOGE tokens between August 2 and 3. This period also saw a 5% price rebound to $0.20 before a slight retreat, suggesting possible short-term buying interest at key levels [3].

Open interest in Dogecoin’s futures market has surged to $3.01 billion as of August 5, a 2.63% increase from the previous day. This rise indicates that traders are placing larger bets on a potential price breakout to $0.24, but the immediate resistance at $0.20 remains a critical threshold for determining near-term momentum [4]. Analysts have also projected a 5% annual growth rate for Dogecoin, which, if realized, could see the price reach $0.3304 by 2026. However, such forecasts are contingent on market conditions and external macroeconomic factors [5].

The broader cryptocurrency market remains under pressure, with Ethereum also showing weakness as it recently fell to $3,500. Institutional buying interest has increased, but the overall risk-off environment has led traders to favor Bitcoin over smaller altcoins. Dogecoin, along with Stellar and Remittix, is among the altcoins being closely monitored for signs of a potential recovery in the coming weeks [6].

Source:

[1] DOGE Sheds 5% as Volume Quadruples, Testing Key Support Zones – CoinDesk (https://www.coindesk.com/markets/2025/08/06/doge-sheds-5-as-volume-quadruples-testing-key-support-zones)

[2] Bitcoin slips below $115200 as U.S. tariffs rattle markets – MSN (http://www.msn.com/en-in/money/markets/bitcoin-slips-below-115-200-as-u-s-tariffs-rattle-markets-ethereum-solana-dogecoin-fall-up-to-8/ar-AA1JHIZb?apiversion=v2&batchservertelemetry=1&domshim=1&noservercache=1&noservertelemetry=1&ocid=finance-verthp-feeds&renderwebcomponents=1&wcseo=1)

[3] Ethereum nears $4K as Dogecoin Stellar and Remittix gain traction – AInvest (https://www.ainvest.com/news/ethereum-news-today-ethereum-nears-4k-dogecoin-stellar-remittix-gain-traction-2508/)

[4] Dogecoin Open Interest Surges Past $3B as DOGE Price Eyes $0.24 Breakout Target – Coinspeaker (https://www.coinspeaker.com/dogecoin-open-interest-surges-past-3b-as-doge-price-eyes-0-24-breakout-target/)

[5] Dogecoin (DOGE) Price prediction – Bitget (https://www.bitget.com/price/dogecoin/price-prediction)

[6] 3 Altcoins Eyeing Rebounds After Sharp Weekly Pullbacks – Investing.com (https://www.investing.com/analysis/3-altcoins-poised-to-extend-rebounds-after-sharp-weekly-pullbacks-200664836)