In trading, investors treat every “dip” as either a buying opportunity or a reason to exit
Currently, Dogecoin [$DOGE] is at the center of that tug of war. Technically, $DOGE is down more than 10% over the past thirty days, in line with the memecoin market losing over $2 billion in market capitalization. As the largest memecoin, $DOGE continues to drive sentiment across the sector, with its capital flows clearly setting the direction for the rest of the market.
That is why the latest selloff has put the entire memecoin space under the spotlight. As the chart below shows, $DOGE has reached one of its most oversold levels on record. The token is now down roughly 90% from its all-time high, trading near a three-year low of $0.067, while its monthly RSI has dropped below the levels seen during the 2022 bear market bottom.
Historically, extreme RSI readings have often marked periods of heavy capitulation, with aggressive selling driving the latest 10% correction.
More importantly, the move also pushed $DOGE below the key $0.08-$0.07 support zone, marking its first breakdown of this range since late 2023 and early 2024. That breakdown has likely left a large portion of HODLers underwater, with many investors who accumulated above these levels now sitting on unrealized losses. So, instead of riding out the FUD, many chose to capitulate.
This has split the market into two views. Bears see $DOGE’s oversold RSI as a sign that the correction is not over, making any bounce an opportunity to exit. Bulls, however, argue that these extreme RSI levels have historically marked major bottoms, making the current pullback a potential buying opportunity.
The question now is: Which side will shape Dogecoin’s Q3?
$DOGE has reached a critical turning point
The current market split has pushed $DOGE into a critical zone.
On one side, analysts are calling its historic oversold conditions the “biggest buying opportunity” in years, with some even forecasting a move toward $1. On the other hand, bears argue the latest breakdown marks the “beginning of the end for the memecoin.” With sentiment so deeply divided, $DOGE now sits at a critical point where a move in either direction could trigger massive liquidations and set the tone for the rest of Q3.
However, the latest on-chain data may already be hinting at which side has the upper hand. As the chart below shows, weekly active $DOGE addresses jumped 16%, from 38,000 to 44,000, pointing to a pickup in network activity even as price continued to weaken. Historically, rising address activity during periods of heavy selling has often signaled renewed market participation rather than fading interest.
According to AMBCrypto, this could be an important catalyst for $DOGE’s Q3 outlook.
The idea is simple: rising network activity while $DOGE trades at historically oversold levels is unlikely to be a coincidence. Instead, it suggests that market participants are stepping back in, potentially signaling early accumulation rather than continued capitulation.
If that trend continues, seller exhaustion could start to meet fresh demand, creating the setup for a textbook bear trap. As short sellers get squeezed and sidelined buyers rush back in, FOMO could build quickly, putting the $0.10 level back on the radar as $DOGE’s first major Q3 target.
Final Summary
- $DOGE’s correction has split the market. Some expect more downside, while others see a buying opportunity.
- Meanwhile, rising on-chain activity suggests buyers are returning, with $0.10 emerging as the next key target if momentum builds.