Dogecoin Plunges 8%—But This Key Trendline Could Spark a Massive DOGE Rebound

Dogecoin's latest nosedive has traders sweating—but the memecoin's long-term uptrend remains intact. Here's why DOGE bulls aren't panicking yet.

The Dip That Didn't Break the Chain

While DOGE's 8% skid stings, the cryptocurrency continues riding a multi-year support channel that's held through every major crypto winter. This isn't the first rodeo for the Shiba Inu-themed asset.

Rebound Fuel in the Tank?

History shows Dogecoin thrives on volatility. The same retail traders who treat it like a casino chip during bull runs could flood back at the first whiff of recovery—because nothing says 'sound investment strategy' like chasing the dog with the flamethrower sunglasses.

Whether this is the buying opportunity of the decade or just another pit stop on the way down depends entirely on whether Bitcoin's next move makes Wall Street brokers look like geniuses or... well, their usual selves.

Dogecoin Records Sharp Daily Decline

Dogecoin (DOGE) fell 8% in the past 24 hours, dropping from $0.22 to $0.21. This was one of the steepest daily moves for the token in July. The price action moved within a $0.23 to $0.20 range, facing resistance at the top and heavy selling NEAR the session close.

However, trading volumes spiked, with a midnight surge to 1.25 billion DOGE, which points to large liquidations and cascading sell orders from Leveraged positions. 

Dogecoin trades at $0.20 as of press time, down 11% over the past week, giving it a market cap of $31 billion.

Long-Term Channel Remains Intact

Trader Tardigrade shared a 1-month chart showing Doge inside a long-term ascending channel that has held since 2014. DOGE has often bounced from the lower boundary of this channel, shown in pink on the chart.

$Doge/M1#Dogecoin Long term Channel has been established pic.twitter.com/m8nfq29Q8M

— Trader Tardigrade (@TATrader_Alan) August 1, 2025

Meanwhile, the current price is near the lower-middle part of the channel, an area that has led to multi-month rallies when the trend held. Dogecoin’s long-term structure stays intact while it trades within this ascending channel, even after the recent decline.

In addition, Trader Tardigrade also noted that Dogecoin’s monthly candle closed as the third consecutive bullish engulfing candle, which he described as a setup for a potential “move to Valhalla.”

Short-Term Wedge and Institutional Activity

Ali Martinez noted that DOGE may be forming a falling wedge on the 1-hour chart, with a projected target of $0.265. A move above $0.229–$0.230 WOULD confirm bullish momentum, while $0.215–$0.210 remains key support if the wedge fails.

Dogecoin $DOGE could be forming a falling wedge, which projects a target of $0.265! pic.twitter.com/P9WQbMrXfI

— Ali (@ali_charts) July 31, 2025

Institutional wallets acquired 310 million DOGE during the correction. Bit Origin added 40 million DOGE to its treasury under a $500 million diversification program. Broader crypto markets remain pressured by macroeconomic uncertainty, with inflation and equity risk shaping short-term demand.