Dogecoin is once again facing downward pressure, shedding more than 3 percent of its value in the past 24 hours. This decline follows a recent recovery on July 28, after the meme coin had previously dropped to similar levels. The repeated volatility has left investors questioning the reasons behind Dogecoin’s latest dip.
Currently, Dogecoin is struggling to maintain support around the $0.25 mark. This level has proven difficult to hold, with three failed attempts to establish it as a stable support point earlier this month. At the time of writing, Dogecoin has slipped to approximately $0.2274, despite showing signs of recovery earlier in the day. This pattern suggests a continued correction phase for the token.
The broader cryptocurrency market is also experiencing turbulence, contributing to Dogecoin’s decline. Macroeconomic factors and widespread liquidations are undermining recent rallies. A key influence is the upcoming Federal Open Market Committee meeting scheduled for July 30. Expectations for interest rate cuts remain low, which has dampened investor sentiment across the crypto space.
Adding to the uncertainty is growing volatility surrounding the White House’s upcoming crypto policy report. This has triggered significant market reactions, including $16.53 million in liquidations over the past 24 hours. Futures open interest has also dropped by nearly 10 percent. Despite these setbacks, the crypto sentiment index continues to place investors in the greed zone, suggesting that the current downturn may be temporary.
Interestingly, while the market correction has pushed Dogecoin’s price lower, large investors have taken the opportunity to accumulate. Crypto analyst Ali Martinez reported that whales have purchased over 130 million Dogecoin tokens in the past 24 hours. Trader Edge offered an even more bullish figure, estimating that whale purchases have reached 1.08 billion tokens over the last 48 hours.
Dogecoin’s trading volume has surged to $2.59 billion, indicating strong investor interest despite the price drop. Analysts believe that a short-term breakout is still possible, with $0.24 to $0.25 serving as critical support levels. However, if Dogecoin fails to hold these levels, further declines may follow, according to current price predictions.
In summary, Dogecoin’s recent dip is driven by a mix of technical resistance, macroeconomic pressures, and policy uncertainty. Yet, whale activity and trading volume suggest that investor confidence in the meme coin remains resilient.
