DOGE Drops 8.75% After 27% Rally, Key Support Under Pressure

Dogecoin is seeing a sharp correction just days after triggering a bullish MACD crossover that many analysts saw as the setup for a major upside move.

The meme coin fell 8.75% in the last 24 hours, retracing from a high of $0.288 to as low as $0.2399—erasing much of last week’s 27% rally.

The pullback comes amid a broader market decline sparked by President Trump’s July 23 warning of “much higher tariffs” on countries not aligned with upcoming U.S. trade policy changes. The August 1 deadline looms as a macro shock, with over $508 million in crypto long positions liquidated in the aftermath.

Technical breakdown: overbought and overextended

DOGE’s correction follows classic overbought conditions. The RSI14 reached 82.66, its highest reading since February 2025, flashing a warning just as price failed to hold above the 23.6% Fibonacci retracement at $0.254. Despite the bullish MACD cross, histogram momentum has begun narrowing—suggesting fading follow-through strength.

The current bounce rests on the 50-day simple moving average at $0.2399. If this level fails to hold, analysts such as Ali warn of a potential drop to the $0.20 zone, especially as leveraged altcoin positions continue to unwind. Open interest in DOGE and other majors has reached two standard deviations above normal, increasing the risk of cascading liquidations.

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What to watch next

While the MACD signal historically aligns with strong rallies (+84%, +194%, +446%), external macro risks and technical fragility could delay any sustained upside. DOGE must reclaim and hold above $0.254 to resume its bullish trajectory, with upside targets still standing at $0.60–$0.70 per BitcoinConsensus.

Until then, traders should stay cautious as global headlines and funding stress reshape short-term momentum.

Kosta Gushterov

Kosta has been working in the crypto industry for over 4 years. He strives to present different perspectives on a given topic and enjoys the sector for its transparency and dynamism. In his work, he focuses on balanced coverage of events and developments in the crypto space, providing information to his readers from a neutral perspective.