Meme coin DOGE continued its decline on Monday, breaching support levels and inciting new selling interest as overall market risk appetite waned.
What to Know
Dogecoin dropped 5% over the 24-hour period from August 4 at 21:00 to August 5 at 20:00, sliding from $0.21 to $0.20. The token fluctuated within a $0.013 range, with a low of $0.198 and a peak of $0.211. A significant liquidation event took place during the 14:00 hour on August 5, with volumes hitting 877.9 million—nearly four times the 24-hour average of 268.85 million—leading to a breakdown below $0.205.
DOGE concluded the session at $0.1985 after failing to regain higher resistance levels, indicating ongoing institutional selling and confirming new downward momentum. This development occurs amidst broader cryptocurrency market weakness influenced by risk-off sentiment across global equities.
News Background
DOGE’s decline corresponded with $223 million in institutional outflows from crypto-linked ETFs over the past week, according to RialCenter data. The Fed’s hawkish posture and renewed geopolitical concerns—such as retaliatory tariffs and disruptions in commodity flows—have contributed to risk aversion in both traditional and crypto markets.
Moreover, the meme coin sector is under pressure as retail enthusiasm diminishes and large holders shift into higher-beta altcoins or cash. DOGE showed signs of accumulation last week, but the failure to maintain the $0.205 level negated that potential.
Price Action Summary
DOGE started the session strong, reaching $0.211 at 01:00, but reversed sharply throughout the day. The most significant drop occurred at 14:00, when the price fell from $0.205 to $0.199 with 877.9 million in volume. By 19:51, another decline to $0.1975 occurred on a volume of 19.04 million—over 70 times the hourly average—before a slight rebound to $0.1985 by close.
New resistance has formed around $0.205, with the price unable to maintain recoveries above this level after the breakdown. Currently, the token trades near session lows with no signs of a reversal.
Technical Analysis
- DOGE traded within a 6% range between $0.198 and $0.211
- Volume spiked to 877.9 million at 14:00, nearly four times the daily average
- Rejection at $0.205 triggered a mid-session breakdown
- Support was tested at $0.198-$0.199, but the volume on the bounce remained weak
- The final hour saw a 19.04M volume surge at the $0.1975 level, creating local resistance at $0.1988
- Momentum remains bearish unless the price reclaims $0.205 with convincing volume
What Traders Are Watching
Traders are closely monitoring whether DOGE can stabilize above $0.198 or face further declines towards $0.185. A struggle to recover above $0.205 may lead to extended liquidations. With volumes spiking during downtrends and fading on recoveries, sellers remain in command unless macro risk sentiment improves or ETF outflows reverse.
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