DOGE Holds Key Support Amid Market Dip: Traders Stay Bullish for Potential Rebound

Dogecoin (DOGE) is currently testing a critical support level at $0.19 after a 30% decline from its July peak of $0.28. Despite the recent drop, traders remain optimistic, as evidenced by a 3:1 long/short ratio on major exchanges. Technical indicators show weakening momentum, with the RSI dipping below 50 and a bearish MACD crossover. However, the 4-hour RSI is nearing oversold territory below 30, a level that previously preceded a 70% rally in June. This suggests potential for another upward MOVE if the support holds. As of August 5, 2025, the market sentiment remains cautiously bullish, with many anticipating a rebound similar to June's performance.

Dogecoin Tests Key Support as Traders Maintain Bullish Stance Despite 30% Drop

Dogecoin's price has retreated 30% from its July peak of $0.28, now testing critical support at $0.19. Technical indicators show weakening momentum, with the RSI dipping below 50 and a bearish MACD crossover. Yet futures data reveals traders remain optimistic, maintaining a 3:1 long/short ratio across major exchanges.

The 4-hour RSI nears oversold territory below 30—a level that preceded June's 70% rally. Despite breaking below both the 50-day and 200-day EMAs, the golden cross pattern from late July suggests the broader uptrend remains intact. Macroeconomic headwinds, including new import tariffs and steady Fed rates, have pressured risk assets sector-wide.

Meme Coin Market Heats Up: Dogecoin Faces Competition from Newcomer Maxi Doge

The meme coin sector shows signs of revival as investors weigh established player Dogecoin against emerging contender Maxi Doge. While Dogecoin carries the weight of market history and recognition, Maxi Doge's presale has already attracted $320,000, signaling strong interest in newer, higher-risk alternatives.

Maxi Doge differentiates itself with aggressive features: 797% staking rewards and potential integration with Leveraged trading platforms. This contrasts with Dogecoin's more stable position as the original blue-chip meme asset. The market's appetite for both suggests the dog-themed coin meta retains significant traction among speculative traders.

Market dynamics have shifted since Dogecoin's 2021 peak. The current landscape includes countless new meme coins launching daily through platforms like Pump.fun, creating both competition and opportunities for exponential gains that weren't available during Dogecoin's initial rise.

Dogecoin ETF Applications Await SEC Decision as Crypto Giants Vie for Approval

Bitwise, Grayscale, 21Shares, and Rex Shares are among the firms seeking regulatory clearance for Dogecoin ETFs, with the SEC currently reviewing over 70 cryptocurrency ETF filings. No DOGE-based products have gained approval as of mid-2025, leaving the market in anticipation.

Bitwise's January 2025 filing proposes Coinbase Custody for Doge storage and BNY Mellon for cash management, while Grayscale's March submission faces a delayed decision timeline extending to November. Rex Shares anticipates an October-December 2025 review window, and 21Shares' April filing enters the SEC pipeline with a January 2026 deadline looming.

The regulatory bottleneck reflects broader institutional interest in meme coin exposure, with custody solutions and traditional finance partnerships emerging as common themes across applications. Market participants watch for precedent-setting decisions that could reshape altcoin investment vehicles.