TLDR
- Dogecoin price fell 30% from July peak of $0.28 to current $0.19 support level
- Golden cross formation in late July maintains long-term bullish outlook despite momentum cooling
- RSI dropped from above 80 to below 50, while MACD turned bearish showing momentum stall
- Traders remain optimistic with 3:1 long-to-short ratio on major exchanges like Binance and OKX
- Short-term predictions suggest potential dip to $0.20 before possible rebound to $0.22-$0.24 range
Dogecoin price has experienced a sharp correction over the past two weeks. The meme coin dropped nearly 30% from its five-month high of $0.28 reached on July 21.
The cryptocurrency is now trading near the crucial $0.19 support level. This level has become a focal point for traders watching for signs of either a rebound or further decline.
Despite the recent selloff, Dogecoin maintains its position in the top 10 cryptocurrencies by market cap. The coin’s market capitalization currently exceeds $32 billion.
Daily trading volume has increased to $1.71 billion, up 26.2% in the past 24 hours. This surge in volume indicates rising trader activity and engagement with the asset.
The recent decline has brought DOGE below its 50-day exponential moving average of $0.206. The price also tested the 200-day EMA at $0.207 during the correction.
However, bulls have managed to defend the $0.19 support level so far. This defense suggests that buyers are still active at these lower prices.
If the support fails on a decisive daily close with high volume, bears could target $0.17 next. A break below that level could lead to a test of $0.15, representing a 24% discount from current levels.
Technical Indicators Show Mixed Signals
From a long-term perspective, Dogecoin maintains a bullish structure. The 20-day and 200-day moving averages formed a golden cross in late July, which typically signals ongoing bullish momentum.
This golden cross pattern remains intact as long as price stays above the slower-moving average. The primary uptrend for the leading meme coin has not been invalidated yet.
However, momentum indicators are showing signs of cooling. The daily Relative Strength Index (RSI) has dropped from above 80 to below 50, entering bearish territory.
The moving average convergence divergence (MACD) recently turned bearish. This confirms that the recent bull rally has lost short-term momentum.
Short-term algorithmic forecasts predict further cooling. Models suggest DOGE could dip to $0.2061 by August 8, followed by gradual declines to $0.1997 by August 11.
These projected moves create potential opportunities for short sellers or swing traders. The anticipated pullback may serve as a consolidation phase before the next upward movement.
Market Sentiment Remains Constructive
Despite the price decline, trader sentiment appears to remain optimistic. Data from major exchanges shows more traders are positioning for upside than downside.
On Binance, long accounts outnumber short positions by a 3:1 ratio. OKX shows an even stronger reading of 3.6:1 in favor of long positions.
Aggregate Dogecoin futures volume decreased 37% to $4 billion over the past 24 hours. However, open interest remained stable at around $3 billion, suggesting traders are holding positions rather than closing them.
This stability in open interest indicates confidence among market participants. Many traders appear to be waiting for clearer directional signals rather than abandoning positions.
Crypto analyst Ali Martinez highlighted DOGE’s position within a historically strong buy zone. His analysis shows the coin trading inside a long-standing ascending channel that has previously triggered major bull runs.
Dogecoin $DOGE is trading within a historically strong buy zone, which has repeatedly triggered major bull runs in past cycles! pic.twitter.com/oYZF8BVKmE
— Ali (@ali_charts) August 7, 2025
Similar setups in 2017, 2021, and early 2023 all led to explosive upward moves. Martinez suggests the current price level could serve as another launchpad for future gains.
A successful rebound from $0.19 would open the door to a move toward $0.22. Further strength could target the $0.24 resistance level, with $0.25 representing the next major psychological barrier.
Dogecoin price is currently holding above the psychological support of $0.20, with elevated trading volume and stable macro sentiment potentially supporting a move higher.
