TL;DR
- Dogecoin dropped 1.66% in the last 24 hours and is now trading at $0.2001, with a 24-hour trading volume of $1.45 billion, down nearly 18%.
- Selling pressure broke through the $0.201 support, turning previous floors into resistance.
- Analysts say $0.185 could be the next key level if the price doesn’t rebound soon.
Dogecoin is once again under pressure as it struggles to maintain its footing above the $0.20 mark. After briefly showing signs of recovery last week, the popular memecoin has slipped 1.66% over the past 24 hours and now hovers near $0.2001. Traders are keeping a close eye on whether the token can avoid dipping below $0.198, a move that could potentially open the door to a retest of $0.185.
Heavy Volume Shifted Market Sentiment
The recent dip came after a sharp spike in trading activity. On August 5 around 14:00 UTC, DOGE saw an unexpected surge in volume, topping 877 million tokens, over three times its average daily churn. This triggered a breakdown through the $0.201 support level. Since then, price attempts to recover have been met with weak momentum, with each rebound falling short of reclaiming $0.205.
Volume patterns suggest traders are more eager to sell into dips than to buy into rallies. This behavior signals caution among short-term holders, especially as DOGE’s 24-hour volume is now down nearly 18%, settling at $1.45 billion. That decline in trading enthusiasm raises concerns about short-term liquidity strength and limits the chance of an immediate bullish reversal.
Meme Coins Face Broader Cooldown
The dip in Dogecoin is part of a larger slowdown across meme-based digital assets. While DOGE still holds a $30.1 billion market cap and ranks among the top 10 cryptocurrencies, retail-driven interest has cooled, particularly as larger investors take profits and move into more stable sectors.
Last week’s brief rally above $0.21 was quickly erased, and the failure to hold $0.205 has since shifted market dynamics. The current chart shows lower highs and lower lows, a setup that favors bears unless bulls can swiftly regain control and push prices back toward $0.205 or higher.
With the price hovering just above critical support, eyes are now on the $0.198 mark. If this level breaks, traders may see a fast move toward $0.185. Conversely, any strong bounce with sustained volume could renew bullish hopes and position DOGE for a short-term comeback, especially if broader crypto sentiment stabilizes.
