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

Dogecoin Price Correction Continues

Since July 27th, Dogecoin's price has experienced a sustained downtrend, resulting in a nearly 16% market value loss. This decline shows no signs of abating.

August Performance and Historical Trends

Despite the recent drawdown, Dogecoin's performance in August has been consistent with historical trends. The average Q3 price change for the past decade is 1.55%, with a median of -7.14%. August typically yields an average return of 0.28% and a median of -5.23%.

Buy-the-Dip Opportunity

On-chain data supports the "buy the dip" strategy. A buy signal for DOGE in early July remains valid, indicating a potential reversal. Furthermore, the 365-day Market Value to Realized Value (MVRV) dipped to -21% in July, suggesting that buyers from the past year are in a loss position. Historically, MVRV values between -15% and -30% have been favorable accumulation points, leading to price recoveries and rallies.

Technical Outlook

From a technical perspective, the current downtrend is expected to cease around the $0.107 and $0.113 support zone. If buyers enter at this level, it could trigger a significant uptrend.