Dogecoin News Today: Dogecoin Plunges 11% as Crypto Market Turbulence Intensifies

Dogecoin (DOGE) has experienced a sharp correction, sliding nearly 8% in the past 24 hours amid broader crypto market turbulence. The decline, observed in late July and early August 2025, was part of a broader downturn affecting major cryptocurrencies including Bitcoin and Solana. During this period, market liquidations surged to over $635 million, as concerns over potential U.S. tariffs and shifting investor sentiment intensified [3]. The price of DOGE dropped from $0.22 to as low as $0.21, and it closed at $0.20 at the time of writing, down 11% over the past week, with a market cap of $31 billion.

The sell-off has been most pronounced within a $0.23 to $0.20 trading range, where heavy selling was evident near the session close. Trading volumes also spiked significantly, with a midnight surge reaching 1.25 billion DOGE, indicating large liquidations and cascading sell orders from leveraged positions. Despite the sharp move lower, the price remains within a long-term ascending channel that has been intact since 2014. This channel has historically served as a support mechanism, with DOGE often bouncing from its lower boundary during periods of consolidation [1]. Trader Tardigrade noted that the monthly candle closed as the third consecutive bullish engulfing candle—a technical pattern that could signal a potential “move to Valhalla.”

On the short-term chart, Ali Martinez highlighted a falling wedge pattern on the 1-hour chart, which projects a potential price target of $0.265 if the pattern resolves to the upside. A break above the resistance level of $0.229–$0.230 would confirm bullish momentum, while the $0.215–$0.210 range remains a critical support level. The wedge formation has added to the technical debate, with some analysts viewing it as a sign of impending strength, while others remain cautious [1].

Institutional activity has also been notable during the correction. Large holders acquired 310 million DOGE, with Bit Origin adding 40 million to its treasury as part of a $500 million diversification program. This level of on-chain accumulation suggests that institutional investors are continuing to view DOGE as a strategic holding despite its recent volatility.

While the broader crypto market remains pressured by macroeconomic uncertainty—particularly rising inflation and shifting equity risk—DOGE has not yet broken critical support levels that would signal a deeper bearish shift. The long-term channel remains intact, offering potential for a rebound if key levels hold. Analysts are divided on whether the recent drop represents a buying opportunity or a deeper correction, but most agree that the structural integrity of DOGE’s price action has not been compromised [1].

The broader cryptocurrency ecosystem has also seen a wave of declines, with Solana and Cardano joining DOGE in the red. This synchronized movement underscores the interconnected nature of the crypto market, where shifts in one asset can have ripple effects across others. The downturn has also impacted crypto-related equities, with firms like Circle and Bitmine Immersion seeing their valuations fall in tandem with digital assets [4].

Amid the volatility, Maxi Doge, a related meme coin, launched a presale to capitalize on investor interest in the meme coin sector. While this development does not directly affect DOGE’s price, it reflects ongoing enthusiasm for meme-based tokens. However, such projects often carry higher risk due to their speculative nature and lack of fundamental value [1].

Despite the recent losses, DOGE remains within its long-term bullish structure. Investors who have held the asset through previous cycles may view this decline as a normal correction rather than the start of a bear market. The key now is whether the price can hold above $0.21 and begin to consolidate higher within the ascending channel that has defined its journey since 2014.

[1] https://coincentral.com/maxi-doge-launches-presale-as-dogecoin-targets-1-in-august-best-meme-coins-to-buy/

[3] https://www.mitrade.com/insights/news/live-news/article-3-1004061-20250801

[4] https://www.mitrade.com/insights/news/live-news/article-3-1006394-20250802