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.
Dogecoin Falls 23% in 24 Hours: Analysts Predict More Pain in August-September
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
Yet we may also note that October has been much kinder to crypto over the past ten years, so this provides hope that prices will pick up sooner or later.
Indeed, today’s slide has followed largely from poor US jobs data, yet such data raises the likelihood that the Federal Reserve will cut rates by its next meeting.
And rate cuts may be the catalyst that helps to lift cryptocurrency prices and, eventually, bring in a new and fully fledged bull market.
In such a context, the Dogecoin price could return to $0.2 by the end of the year.
And if X follows through with its plans to introduce digital payments, this price could rise even higher.
New Alts May Be Better for Market-Beating Gains
Many traders may lack the patience to wait for X to introduce digital payments and, after that, crypto and DOGE payments.
For this reason, they may be better off investing in newer coins, which can often rise faster than more established coins, particularly as they gain listings.
One new coin looking very good at the moment is PlayDoge (PLAY), an Ethereum-based cryptocurrency that has raised just over $5.9 million in its ongoing presale.
Introducing #PlayDoge – the only #P2E Doge companion! 🐶
Inspired by the legacy of #Tamagotchi, feed, train and play with your 2D Doge to earn $PLAY. 💰
Don’t neglect your doge, his life’s on the line 😲💀
Join the #Presale Now ⬇️https://t.co/JT0VEofqf2 pic.twitter.com/RoJYXLS1FH
— PlayDoge (@PlayDogeGame) June 3, 2024
PlayDoge is on the brink of its launching a Tamagotchi-style play-to-earn game, which will feature nostalgic 8-bit graphics and addictive side-scrolling gameplay.
It will enable players to earn rewards by breeding and completing missions with their own virtual Shiba Inu pets, which they can also trade.
PLAY will be the game’s native currency, which players can use to buy items and trade pets.
They will also be able to stake with it, earning themselves a passive income in the process.
It comes with a capped supply of 9.4 billion tokens, with its presale receiving 50% of this.
This will make it a decentralized token, with investors able to buy it early via the PlayDoge official website.
1 PLAY currently costs $0.00526, although this will rise to $0.00527 in two days.
It will continue to rise fractionally over the course of its sale, and then it will list on exchanges, where it could potentially surge.
Disclaimer: Crypto is a high-risk asset class. This article is provided for informational purposes and does not constitute investment advice. You could lose all of your capital.
