Dogecoin’s price retreated on Tuesday despite a major $500 million investment from Bit Origin, highlighting market hesitation even in the face of growing institutional interest. The memecoin dropped nearly 7% after briefly rallying to a 10-month high, weighed down by profit-taking and overbought technical signals.
DOGE rose to $0.29 following Bit Origin’s announcement but quickly reversed, sliding to $0.26 by late trading hours. The sell-off came amid an overheated Relative Strength Index (RSI) reading of 85.95 — a level that typically signals short-term exhaustion.
Bit Origin’s Strategic Entry
Hong Kong-based Bit Origin disclosed a $500 million plan to gradually accumulate up to 1 billion DOGE as part of its corporate treasury strategy. The firm began with a 40 million token acquisition, positioning Dogecoin as a core long-term asset on its balance sheet.
While the move initially boosted market sentiment, the rally proved short-lived, as traders took profits and technical indicators pointed to stretched conditions.
Market Snapshot
- 24-hour High: $0.29
- Current Price: ~$0.26
- Intraday Decline: ~7%
- Volume Surge: 1.703 billion DOGE traded, more than double the daily average
- RSI: 85.95, signaling overbought conditions
Despite the influx of capital, DOGE failed to break past resistance at $0.29, a level where sellers have consistently stepped in. Support now rests near $0.26, with further downside risk toward $0.245–$0.25 if bearish momentum continues.
Outlook
Dogecoin’s reaction underscores that institutional backing alone may not be enough to sustain price rallies in the absence of broader market confirmation. Traders are eyeing whether the memecoin can stabilize above key support levels or if further downside is ahead amid a cooling technical backdrop.
For bullish momentum to resume, DOGE will need to reclaim the $0.275–$0.29 range with strong volume and renewed buying interest.
