Why Is Dogecoin Price Dropping Today? Analysts Say It’s a Setup for a Major Rally

Following an impressive surge above $0.28 earlier this fourth week of July, now retailers have realized their gains, pushing the DOGE price downwards in a slide.

When writing, the DOGE price has displayed a strong intraday retest move pulling back to a crucial support zone near $0.23. 

Despite this fall, the analysts suggest this retracement may be short-lived, as both technical and on-chain signals remain optimistic for another leg up.

DOGE Price Retests Neckline After Short-Term Decline

Over the past few days, the DOGE price action has mirrored broader market behavior. 

After reaching $0.28 on Monday, which is the highest level since May that Dogecoin has achieved, it hovered between $0.26 and $0.27 before retracing to $0.23 by Thursday. 

This represents a decline of over 15% from local highs, largely driven by rising sell pressure across retail traders.

Despite the recent weakness, known crypto analyst Ali Martinez suggests that the Dogecoin price is now testing the neckline of a double bottom pattern. 

According to his analysis, the current DOGE price has retested this neckline-based critical support range, and holding above it could validate the bullish formation. 

In his view, maintaining this structure opens the door for the DOGE price to advance toward the $0.33-$0.40 resistance zone. 

Ascending Wedge Adds Momentum to Bullish Outlook

In a separate technical breakdown, analyst Trader Tardigrade highlights a broader perspective on the weekly DOGE chart. He posted on X, noting that it’s rebound from the lower border of an ascending broadening wedge, forecasts a giant rally coming.

Tardigrade also believes that the upper border, potentially near $1.00, could act as a magnet, connecting prior swing highs and forming a realistic long-term target. 

This reinforces the idea that the Dogecoin price uptrend may have just begun, and short-term pullbacks could be healthy setups rather than trend reversals.

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On-Chain Data Confirms Whale Accumulation

Adding further weight to the bullish narrative, the Santiment’s on-chain data shows a significant behavioral shift among the DOGE crypto holders. 

It has been revealed that wallets holding between 100 and 10,000 DOGE, typically retail addresses, have steadily declined in number, reflecting ongoing profit-taking during the recent spike.

Conversely, the large holders with 100 million to 1 billion DOGE have increased their accumulation. 

This pattern strongly suggests that while smaller traders have been exiting positions, institutional-sized players are buying the dip, providing strong underlying support for the meme-token.

This supply shift offers further evidence that the DOGE price correction may be temporary. With whale accumulation in play, strong technical patterns forming, and major analysts’ optimism. The DOGE price could soon regain momentum, provided the $0.23 support holds firm.

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