Despite Bit Origin’s $500M Investment, Dogecoin Slides as RSI Enters Overbought Territory

Dogecoin is under pressure despite a landmark $500 million investment from Bit Origin, as the memecoin retreats from recent highs amid overbought technical conditions. The price dropped nearly 7% in the past 24 hours, reversing gains that followed the announcement of the sizable corporate buy-in.

DOGE briefly surged to $0.29—its highest level in nearly a year—before pulling back to the $0.26 range, where it now faces a key support test.

Institutional Demand Meets Technical Resistance

Hong Kong-based Bit Origin revealed a strategic plan to accumulate 1 billion DOGE, starting with an initial purchase of 40 million tokens. The investment is part of a broader effort to diversify its corporate treasury with digital assets.

While the move initially fueled bullish sentiment, the rally quickly stalled as traders took profits and technical indicators flashed warnings.

“Even with institutional support, Dogecoin remains highly sensitive to short-term trading signals and speculative behavior,” noted one market analyst.

Technical Snapshot

24H High: $0.29
Current Price: ~$0.26
RSI: Peaked at 85.95, indicating extreme overbought conditions
Trading Volume: 1.7 billion DOGE — over twice the average daily volume

The rapid RSI surge suggested the rally was losing steam, prompting a pullback as momentum faded. DOGE now hovers just above a critical support range, with downside risk extending to $0.245–$0.25 if selling pressure intensifies.

Short-Term Outlook

Despite Bit Origin’s bullish signal, Dogecoin’s technical setup suggests a consolidation phase may follow. A decisive reclaim of the $0.275–$0.29 resistance band would be needed to revive upward momentum.

In the meantime, traders are closely watching whether additional institutional players enter the market—or if DOGE continues to trade in a broader risk-off environment.

While Bit Origin’s move adds credibility to memecoin adoption at the corporate level, the price action reinforces a familiar message in crypto: headlines alone don’t sustain rallies—momentum does.