Dogecoin Dips Despite Major $500M Backing from Bit Origin, RSI Suggests Exhaustion

Dogecoin failed to hold recent gains despite a major vote of confidence from institutional investor Bit Origin, which unveiled a $500 million treasury allocation to the memecoin. DOGE slid nearly 7% on the day, even as enthusiasm briefly pushed it to multi-month highs.

The token surged to $0.29 following Bit Origin’s announcement, only to reverse course and settle near $0.26. Analysts point to overheated technicals and fading momentum as key reasons for the retracement, even amid bullish corporate backing.

Institutional Inflow Meets Market Exhaustion

Bit Origin, a Hong Kong-based digital asset infrastructure firm, revealed a $500 million strategic plan to accumulate up to 1 billion DOGE over time. The initial phase saw the firm purchase over 40 million tokens, adding Dogecoin to its corporate reserves as part of a broader crypto diversification strategy.

The news sent DOGE briefly higher, but the rally was short-lived.

“Despite the scale of the investment, DOGE remains highly sensitive to broader market sentiment and speculative cycles,” one trader noted.

Price and Technical Snapshot

• High: $0.29 (July 21, 17:00 UTC)
• Low: $0.26 (July 22, during late trading)
• Range: 9% intraday swing
• Volume: 1.703 billion DOGE traded, more than 2x the average
• RSI: Spiked to 85.95 — deep in overbought territory

DOGE now hovers around the $0.26 level, a key short-term support zone. If breached, the next area to watch is the $0.245–$0.25 range, which held during recent corrections.

Resistance Ahead, Momentum Fades

The $0.29 resistance proved strong, with multiple failed breakout attempts. Volume surged during the final hour of trading on Monday, but sell pressure intensified, signaling profit-taking and risk-off sentiment despite institutional inflows.

Technical analysts suggest DOGE needs to reclaim the $0.275–$0.29 zone with conviction to signal renewed bullish strength. Until then, momentum appears to favor consolidation or further retracement.

The Bigger Picture

Bit Origin’s investment highlights growing corporate interest in memecoins, but also reveals the limitations of single headlines to sustain price momentum in overheated markets.

For now, Dogecoin’s trajectory remains tied to broader market liquidity and sentiment shifts. Traders will be watching closely to see whether other institutional players follow suit — or whether DOGE continues to drift despite the backing.