Dogecoin (DOGE) dropped 8% in the past 24 hours, with the price falling from $0.22 to $0.20, marking one of the largest single-day declines in July. The price fluctuated in the range of $0.20 to $0.23, facing resistance at the top and experiencing significant sell-offs at closing.
However, trading volume surged, skyrocketing to 1.25 billion DOGE at midnight, indicating large-scale liquidations of leveraged positions and a significant number of sell orders. Dogecoin remains within a long-term ascending channel established since 2014, with the current price near the lower part of the channel, an area that has historically triggered rebounds lasting several months. Despite the recent decline, its long-term structure remains solid.
The long-term structure of Dogecoin remains intact as it continues to trade within an ascending channel after a recent decline. The monthly candlestick chart for Dogecoin closed with a third consecutive bullish engulfing candle, which he described as a potential setup for a 'surge'.
Dogecoin may be forming a descending wedge on the 1-hour chart, with a target price of $0.265. A breakout above $0.229-$0.230 would confirm bullish momentum, while if the wedge breaks down, $0.215-$0.210 will still be a key support level.
During the market pullback, institutional wallets bought 310 million DOGE. Bit Origin added 40 million DOGE to its treasury through a $500 million diversification plan. The overall cryptocurrency market remains under pressure from macroeconomic uncertainties, with inflation and stock risks affecting short-term demand.