Dogecoin Drops 9% Then Bounces – Crypto Price Outlook 2025
1. Dogecoin Price Drops Sharply But Recovers Quickly – Market Overview
On July 29, 2025, Dogecoin (DOGE) recorded a sharp 9% price drop within a few hours, bringing the price to its lowest level in two weeks. This sell-off occurred as Bitcoin fell below $105,000, dragging many altcoins down.
However, DOGE quickly bounced back after hitting a critical support level at $0.070. Thanks to strong dip-buying from long-term investors and accumulation by major whale wallets, DOGE recovered more than 5% the same day. This shows that Dogecoin’s long-term bullish trend remains intact.
2. Reasons Behind Dogecoin’s 9% Drop – Market Factors and Investor Behavior
Multiple factors contributed to DOGE’s sudden price drop. First, Bitcoin’s sharp decline dragged the entire cryptocurrency market lower. Second, large whale wallets moved millions of DOGE to exchanges, creating significant selling pressure. Additionally, leveraged positions were liquidated when DOGE broke below short-term support levels. Finally, many short-term traders took profits after a 15% price rally in the previous week, further accelerating the decline.
3. On-Chain Data and Whale Behavior – Capital Flow Movements
On-chain data reveals that DOGE deposits to exchanges surged by 12% within 24 hours. Three major whale wallets sold a combined total of 450 million DOGE, driving downward price pressure. At the same time, other large wallets quietly accumulated DOGE during the dip, signaling long-term confidence. Large transactions exceeding 1 million DOGE increased by 18%, underscoring whales’ dominant role in shaping DOGE’s recent market moves.
4. Technical Support and Recovery Signals – Why DOGE Bounced Back
The $0.070 support level has been critical in maintaining DOGE’s long-term bullish outlook. When DOGE approached this zone, the RSI dropped below 30, indicating oversold conditions and triggering strong dip-buying. Buying volume spiked significantly, helping DOGE rebound by more than 5%. Automated trading bots also executed buy orders around this support level, further accelerating the recovery momentum.
5. Technical Analysis and Price Outlook – Bullish Scenarios and Risks
Currently, DOGE faces significant resistance at $0.085. A breakout above this level could open the path to higher targets at $0.10 – $0.12. Conversely, losing the $0.070 support could push DOGE down toward $0.065 or even lower. Nonetheless, the mid-term trend remains positive as long as daily closing prices stay above $0.075. The return of smart money inflows also supports the possibility of a continued bullish move in the near future.
6. Dogecoin Price Forecast and Trading Strategies
In a bullish scenario, DOGE would hold the $0.070 support and break past the $0.085 resistance, potentially climbing toward $0.10 – $0.12. In a bearish scenario, DOGE may retest $0.065 before attempting a rebound. For short-term traders, buying near support and taking profits near resistance levels is a practical strategy. Long-term investors may consider accumulating DOGE below $0.08 in preparation for the next upward cycle.
7. Conclusion – DOGE’s Long-Term Trend Remains Positive
Although Dogecoin recently experienced a strong sell-off, strong dip-buying and solid technical support helped the price recover quickly.
As long as DOGE holds above $0.070, the long-term bullish trend remains intact. Investors should monitor on-chain data and whale behavior to adjust their trading strategies effectively.