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.