Dogecoin Falls 23% in 24 Hours: Analysts Predict More Pain in August-September
The price of Dogecoin has declined by 23% in the past 24 hours and by 3.5% in the past hour, as the cryptocurrency market suffers one of its worst days in years.
At $0.082, DOGE is now down by 38% in a week and by 25% in a month, with the meme token seeing its annual gain fall to only 8%.
And for some analysts today’s bloodbath is likely to continue, with observers pointing out that August and September have historically been crypto’s the worst months, with average ‘gains’ of -7.8% and -5.6%.
This means that the Dogecoin price could see further losses before its situation stabilizes, let alone before it returns to growth.
DOGE’s sudden drop today means that its chart is very much in the red, with its indicators all signalling severe overselling.
Its 30-period moving average (orange) has fallen even further below the 200-period average (blue), and normally a short-term average shouldn’t fall much lower without rebounding.
At the same time, DOGE’s relative strength index (purple) has fallen to 20 today, which is pretty much as low as it could possibly go.
Of course, just because it has hit rock bottom doesn’t mean we will see a vigorous rally anytime soon, with a small ‘dead cat bounce’ being likelier right now.
The latest data suggests that whales are still preparing to sell the meme token, with its trading volume surging today as existing holders rush to sell.
If this wasn’t bad enough, some analysts are pointing out that, if history is any guide, the rest of the month – and the next – won’t be much better for Dogecoin.
Historically, August and September are the worst months for #Bitcoin price performance, with average losses of -7.82% and -5.58%, respectively. pic.twitter.com/y9lGeHcFf1
— Ali (@ali_charts) August 4, 2024
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