Dogecoin slipped sharply on Tuesday despite a major institutional investment from Bit Origin, as traders reacted to overheated technical conditions and booked profits. The memecoin dropped nearly 7% intraday, retreating from a multi-month high near $0.29.
The decline came just hours after Hong Kong-based Bit Origin unveiled a $500 million treasury allocation plan for DOGE, marking one of the largest corporate moves into a memecoin to date.
Big Buy, Short Rally
Bit Origin confirmed its intention to accumulate 1 billion DOGE over time, beginning with an initial purchase of 40 million tokens. The announcement briefly sent Dogecoin higher, but the rally quickly ran into resistance near $0.29 — a level that has capped prior upside attempts.
Despite the scale of the investment, DOGE’s surge faded quickly amid technical exhaustion and broader risk-off sentiment.
Technical Breakdown
- High: $0.29 (July 21)
- Low: $0.26 (July 22)
- Volume: 1.703 billion DOGE traded — more than twice the daily average
- RSI: Spiked to 85.95, deep into overbought territory
The relative strength index (RSI) crossing above 85 signaled short-term overheating, triggering a wave of selling pressure as traders locked in gains.
DOGE now sits at the lower end of its recent range. A break below $0.26 could expose the token to further downside toward the $0.245–$0.25 zone — a key historical support area.
Sentiment and Outlook
While Bit Origin’s investment highlights growing institutional appetite for digital assets beyond Bitcoin and Ethereum, the market’s reaction reinforces the idea that price gains still depend heavily on technical setups and momentum.
Traders are watching closely to see whether this correction stabilizes or deepens. A clean breakout above $0.29 would be needed to reassert bullish control, but current indicators suggest consolidation — or continued pullback — is more likely in the near term.
Until Dogecoin regains upward momentum, institutional entries may serve more as sentiment markers than immediate price catalysts.
