#Dogecoin‬⁩ Price Analysis: What to Expect From DOGE in August?

Dogecoin Continues Downtrend, But Reversal Signs Emerge

- Dogecoin (DOGE) is experiencing a sustained downtrend, having closed lower for six consecutive days since July 27. Over this period, DOGE has lost nearly 16% of its market value, & the current trend suggests it may continue its descent.

August Performance & Historical Context

- Dogecoin’s recent performance shows no signs of halting despite a 16% decline. Historical data for the third quarter indicates that DOGE typically underperforms during this period, with an average return of just 1.55% & a median performance of -7.14% over the past decade. Specifically, Dogecoin’s price in August has averaged a return of 0.28% with a median decline of -5.23%.

- On-chain data supports the potential for a rebound. The Market Value to Realized Value (MVRV) metric from Santiment, which measures average investor returns, fell to -21% in early July.

- This suggests that investors who bought DOGE over the past year are, on average, experiencing a 21% loss. Historically, MVRV values between -15% & -30% have been good accumulation points leading to price reversals & significant rallies. If this trend holds, the swing low of $0.091 from July 5 could serve as a bottom & set the stage for a recovery.

Technical Outlook for DOGE

- Technically, the downtrend for Dogecoin might find support around the $0.107 to $0.113 range. If buyers or long-term investors step in at these levels, a reversal could spark a volatile uptrend.

- Should DOGE rebound, the next key resistance level is $0.128, marking a 14% increase from $0.113. Beyond this, the token may retest the $0.148 level, a critical support zone from March to May 2024. Successfully flipping this resistance to support could push DOGE towards the $0.175 to $0.181 range, representing a potential 55% gain from $0.113.

Conversely, if DOGE falls below the $0.107 to $0.113 support zone, it could invalidate the bullish scenario & lead to a 15% decline towards the July 5 low of $0.0913.

Source - coingape.com