• Dogecoin drops to $0.20, marking July’s steepest intraday loss with a 10% weekly decline, yet remains within its long-term uptrend channel.
• On-chain activity spikes, with over 1.25 billion DOGE traded amid mass liquidations and sell-offs triggered by stop-loss orders.
• Bullish technical patterns emerge, including a falling wedge on the 1-hour chart and a third consecutive bullish engulfing monthly candle.

Dogecoin (DOGE) fell nearly 5% in the last 24 hours, slipping from $0.22 to $0.20 in July’s sharpest intraday loss so far. The token traded as high as $0.23 and as low as $0.20 amid stiff resistance and heavy selling. Down 10% on the week, DOGE’s market cap has declined to $31 billion, but technical analysts remain bullish on its broader outlook.

Despite the bearish action of the price, on-chain activity surged. The volumes spiked at midnight and hit 1.25 billion DOGE. Analysts stated that the instantaneous spike might have been triggered by mass liquidations and declining sell orders as stop-loss movements were attained on all of the exchanges, bringing about an explosive sell-off.

Dogecoin Trading in Long-Term Channel Again

Prominent technical analyst Trader Tardigrade shared a chart showing Dogecoin still within the long-standing ascending channel it has occupied since 2014. The lower edge of this channel has historically acted as a strong support area, with DOGE previously bouncing off it during earlier cycles.

Today, Dogecoin is positioned near the lower-middle region of the channel, a zone that in past cycles has preceded strong multi-month rallies. Tardigrade noted that DOGE’s long-term technical setup remains strong as long as it holds within this uptrend channel.

Additionally, Tardigrade pointed out the recent monthly candle close, which marks the third consecutive bullish engulfing candle, an indication he considers a solid setup for a potential breakout, referring to it as a possible “move to Valhalla.”

Also Read | Dogecoin August Price Prediction: Is $0.74 Still Within Reach?

Dogecoin in Falling Wedge: Short-Term Reversal in Sight

On shorter timeframes, crypto analyst Ali Martinez highlighted a potential falling wedge pattern forming on Dogecoin’s 1-hour chart, a formation that often signals bullish reversals.

Martinez noted that a breakout above the $0.229–$0.230 resistance zone would confirm a momentum shift, with a potential upside target of $0.265. Conversely, the $0.215–$0.210 area remains a crucial support zone if the wedge pattern fails.

Despite the recent drop, institutional investors appear to be using the dip as a buying opportunity. Wallet data shows large holders purchased 310 million DOGE during the correction. Notably, Bit Origin, a digital asset investment firm, acquired 40 million DOGE as part of its $500 million diversification strategy.

The crypto market continues to face pressure from inflation concerns and equity market volatility, driving short-term uncertainty. Still, long-term holders and institutional buyers of Dogecoin appear to maintain confidence.

DOGE’s position within a long-term uptrend channel, coupled with growing institutional demand, suggests the recent pullback may mark the beginning of a broader accumulation phase.

Also Read | Dogecoin Price Prediction: Breakout Could Drive DOGE to $0.28 and Beyond