Dogecoin Price Surge Imminent: Increased Trading Volume Signals Potential Rally in August

• Dogecoin and Shiba Inu are the leading meme coins, attracting substantial interest from crypto investors.
• Current market trends suggest potential bullish movements for these cryptocurrencies in the upcoming months.
• Increased trading volumes and historical performance data provide insights into the future price actions of Dogecoin and Shiba Inu.

Discover the potential price movements for Dogecoin and Shiba Inu in the coming months, backed by insightful data and trends analysis.

Dogecoin’s Price Trajectory: What August Could Hold

Recent data from CryptoRank indicates that Dogecoin has faced significant challenges in maintaining its price, with a noticeable drop of 21.9% in June. However, a modest recovery of 4.24% in July showcases emerging resilience. Looking towards August, there are signs that a price reversal could be on the horizon.

A major indicator pointing to a potential increase in Dogecoin’s price is the spike in trading volume. CoinMarketCap’s data highlights a 60% surge in daily volume last Sunday, pushing it past $1.22 billion. Typically, such an increase in trading volume signifies growing investor interest, possibly heralding the end of the recent sell-off that brought Dogecoin’s price down to $0.13.

Yet, historical patterns present a mixed outlook. Over the past decade, Dogecoin has experienced more bearish August months than bullish ones, with 60% of these months ending in losses and an average return of only 0.83%. This history suggests that any short-term rally may be fleeting, with bears potentially regaining control quickly.

Shiba Inu: Poised for Better Performance?

In contrast to Dogecoin, Shiba Inu appears to have a relatively brighter outlook. Although its trading volume saw only a minimal increase of 4% last Sunday, its historical performance in August has been stronger. CryptoRank’s data reveals that Shiba Inu has a three-year average return of 2.67% and a median return of 3.36% for August. Despite closing last August with a 5.44% decline, the current reduction in July’s losses to 2.76% implies a potential turnaround.

Given these averages, Shiba Inu could potentially climb above $0.17 again. However, similar to other altcoins, Shiba Inu’s price movement will be largely influenced by Bitcoin’s performance. The broader market trends set by Bitcoin will play a crucial role in determining whether August will be a month of gains or losses for Shiba Inu.

Conclusion

As we move forward, the performance of Dogecoin and Shiba Inu will be key focal points for investors in the meme coin market. Dogecoin’s recent surge in trading volume could signal renewed interest, although its historical performance in August poses caution. Shiba Inu, on the other hand, exhibits a stronger historical trend for August, suggesting potential gains. Investors should keep a close eye on these cryptocurrencies, considering both historical data and upcoming market dynamics, to make informed decisions. Future movements will undoubtedly be influenced by broader market conditions, especially those led by Bitcoin.