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On July 22, Dogecoin was trading at $0.268 after failing to keep its recent breakout beyond $0.29. The meme coin dropped more than 7% from its 10-month high despite institutional backing by Bit Origin. The trading volume decreased by 4.6% over the last 24 hours, indicating near-term fatigue.
On July 21, Dogecoin surged to $0.29 when a Hong Kong-based corporate treasury company, Bit Origin, announced a $500 million DOGE stash. The action represented buying the holdings of 40 million DOGE tokens, as part of a longer-term strategy. This announcement caused a sharp rally, which was soon reversed. As of July 22, the price of DOGE had dropped to $0.268, a 7% decline from its session high.
The rally initially lifted DOGE from $0.267 to $0.29 in less than six hours, but trading activity waned toward the end of the session. During the breakout, the trading volume doubled daily to 1.703 billion DOGE, a 2.5-fold jump in retail interest. However, this movement weakened when the price corrected. DOGE finished lower than major resistance and did not receive follow-through demand, despite institutional participation.
The rally saw RSI readings jump up to a high of 85.95. This high level usually indicates overbought sessions. This is a technical aspect that traders raised as a potential cause of the correction. As RSI cools down and prices stabilize above $26, the question presently arises as to whether buyers can defend this level and regain upward momentum.
As of July 22, the Dogecoin market cap totals $40.26 billion, and the circulation volume during the past 24 hours is $6.13 billion. The volume-to-market cap ratio is healthy, with 15.23% indicating that there is active participation. However, the minor declining volume suggests that traders are slowing momentum after the recent volatility. DOGE is currently trading in a tight range of $0.257- $0.271 after peaking near $0.284.
The consolidation followed a strong breakout that started on July 17th, when DOGE rose from about $0.20 to nearly $0.29. This pattern resembles a short-term bull flag, where prices consolidate before resuming their previous trend. However, this scenario depends on whether DOGE can reclaim resistance between $0.274 and $0.284 in the coming sessions.
If DOGE falls below $0.26, further losses toward the $0.245–$0.250 region are possible. On the upside, reclaiming $0.275 could reopen a path to $0.30 and above. Traders continue to monitor support levels and volume behavior to determine the next course of action.
Also Read: Crypto Prices Today: Bitcoin Price at $117,000, XRP Hits $2.87, DOGE Falls 7.48%
Although it has pulled back recently, Dogecoin remains 39% up on its weekly chart after jumping from $0.192 on July 15. The Price structure shows clear ascending steps, with prior consolidations at $0.22, $0.24, and $0.26. If $.26 holds, it may create a new higher low and, therefore, support the bullish trend.
Institutional entries, such as the allocation by Bit Origin, could still influence sentiment. Nonetheless, the inflationary nature of DOGE over the long term and uncapped supply rate have the potential to be a point of less interest in comparison to deflationary tokens. A return of substantial volume above $7 billion and a break above $0.284 would strengthen the bullish case.
For now, Dogecoin’s outlook depends on short-term consolidation behavior and broader market sentiment. A decisive move above or below the $0.26–$0.275 range may define its trajectory for the next several days.
