The Dogecoin (DOGE) had a mixed month in July. The coin declined by more than 36% in the first three weeks of the month and then rebounded by 46% to $0.2346. It is now trading at $0.2045, bringing its total market capitalization to more than $27.2 billion. It is the eighth cryptocurrency in the world.
DOGE price July price action
Dogecoin has had a difficult time in the past few months. The coin’s price rose to an all-time high of $0.7380 in May amid the crypto bull run. Since then, the coin’s price declined by more than 78% as digital currency prices declined.
The price made a modest recovery in August after Elon Musk expressed support for the coin. In a statement at the B Word Conference, the Tesla boss said that he remained optimistic about the coin. He also said that he was bullish on Bitcoin and Ethereum.
The rebound of Dogecoin price happened as part of the overall cryptocurrency rally. Bitcoin moved from below $30,000 to more than $41,000. This is important because of the fact that most cryptocurrencies have a close correlation.
Looking ahead, the coin will react to the overall performance of cryptocurrencies and other assets like stocks in August. It will rise if Bitcoin keeps rising. The next catalyst will likely be the trends in Covid infections. While Covid is a bad thing for most assets, in reality, it is a good thing for cryptocurrencies. This is because it usually leads to a dovish Federal Reserve. A dovish Fed is good for risky assets.
The Fed will not meet in August. Still, there is a possibility that Jerome Powell will sound dovish in his speeches. This will be positive for Dogecoin.
Dogecoin price prediction
The daily chart shows that the DOGE price has struggled in the past few months. It has already moved below the 50-day moving average. It is trading at the 200-day moving average. It has also moved below the neckline of the head and shoulders pattern.
Therefore, the overall view of the coin in August is dovish. If this happens, the next key level to watch will be $0.05. On the flip side, a move above $0.25 will invalidate the bearish view.