Bitrabo Editorial
The movement of Dogecoin and Shiba Inu is closely monitored by cryptocurrency investors, as the leading meme coins in the market. The prices surging for Dogecoin and Shiba Inu can often trigger a wave of gains for other meme coins. Although these meme coins faced challenges in the second quarter of the year, the third quarter appears to hold more promise.
Reasons Behind a Possible Dogecoin Price Surge
Data from CryptoRank indicates that Dogecoin has struggled to maintain its price in recent months, experiencing a 21.9% decline in June and marginal 4.24% gains in July. However, the upcoming month of August could bring about a shift in price momentum.
A significant indicator that Dogecoin’s price might rise in the approaching month is the notable surge in trading volume. According to CoinMarketCap, Dogecoin’s daily volume spiked over 60% on Sunday, exceeding $1.22 billion.
Typically, an increase in a coin’s trading volume signifies a growing interest in that asset. For Dogecoin, this surge could imply that the recent sell-offs, driving the price down to $0.13, could be tapering off, potentially paving the way for a price rally.
Yet, historical trends suggest that any rally into August may be short-lived for Dogecoin. Over the past ten years, Dogecoin has experienced more bearish August months than bullish ones, with 60% closing in losses and only 40% in profits, averaging a return of 0.83% and a median return of -5.17%. If this pattern persists, a rally could quickly fade, leading to a bearish resurgence.
Shiba Inu’s Favorable Outlook
In contrast to Dogecoin, Shiba Inu might have a more promising August. While its trading volume has been subdued, with just a 4% uptick on Sunday, its historical average returns for August surpass those of Dogecoin.
Data from CryptoRank highlights that over the past three years, Shiba Inu has shown strong performance in August, averaging 2.67% returns with a median of 3.36%. Although Shiba Inu incurred a 5.44% decline last August, the potential for a turnaround seems plausible as its July losses have decreased to 2.76%.
Based on average and median returns, Shiba Inu could potentially surpass $0.17 once more. However, like the broader altcoin market, the direction of Bitcoin’s movement will significantly impact whether August leans towards bullish or bearish trends.