The direction of Dogecoin and Shiba Inu are of great interest to crypto investors, given their role as the two largest meme coins in the market. Often, the Dogecoin and Shiba Inu prices Rallies could signal a meme coin run that could send other meme coins higher. While both meme coins struggled in the second quarter of the year, the third quarter could develop into a more bullish quarter.
Why Dogecoin Could See a Price Surge
Using facts From CryptoRank we can see that the price of Dogecoin has struggled to hold on to the gains of the past two months, with a 21.9% drop in June, with small gains of 4.24% so far in July. However, with August approaching, there could be a turnaround in price.
One development that suggests that the Dogecoin price could move higher in the new month is an increase in volume. According to facts According to token tracking website CoinMarketCap, Dogecoin’s daily volume rose more than 60% on Sunday to over $1.22 billion.
For any coin, a surge in the coin’s trading volume suggests that attention is turning to that coin. In the case of Dogecoin, it could mean that the sell-off that brought the price back to $0.13 is finally coming to an end, and as a result, leave room for DOGE price to rise.
However, based on historical data, a potential rally into the new month may not last long. In the decade that Dogecoin has existed so far, it has seen more bearish Augusts than bullish ones. So far, 60% of Augusts have ended in losses, with only 40% in gains, with an average return of 0.83% and a median return of -5.17%. If this trend continues, a rally would quickly taper off, giving bears a chance to win back control over the price.
Shiba Inu has better prospects
Compared to Dogecoin, the Shiba Inu award may have better luck in the month of August. While trading volume has remained muted, with only a 4% increase on Sunday, average returns for the month of August remain higher than Dogecoin.
CryptoRank data shows that the Shiba Inu price has performed well in the month of August over the past three years, with an average of 2.67% and a median of 3.36%. SHIB Prize closed in the red last August with a drop of 5.44%, but the chance of a change has increased as losses narrowed to 2.76% in July.
If we take the average and median returns, then Shiba Inu Could Rise Above $0.17 again. However, just like the rest of the altcoin market, the direction in which Bitcoin swings will largely determine whether August will be green or red.
Main image created with Dall.E, chart from Tradingview.com