After a strong rally in July, Dogecoin's price has also encountered a slowdown like other markets. Consequently, short sellers seem to be regaining control, with Dogecoin's price declining further after a significant breakthrough at the $0.20 level. However, compared to the persistently bullish sentiment among investors, the current decline seems negligible, as investors expect this pullback to be temporary.
Dogecoin's price still shows bullish signs.
According to cryptocurrency analyst KrissPax, Dogecoin's price may currently be declining but has not completely lost its upward potential. This is because this meme coin is currently in a bullish formation, retracing to test levels that previously led to significant price increases.
The cryptocurrency analyst points out that Dogecoin's price is expected to drop below 30 on the 4-hour RSI chart again, and historically, such declines often lead to rebounds. The last time the RSI dropped below 30 on the 4-hour chart was in June 2025, after which it rebounded by more than 70% within a month.
Given this historical performance, Dogecoin's RSI may once again drop below 30, potentially leading to similar outcomes. The only difference this time is that the price is at different levels, meaning there is a significant difference in the positions of the highs in the uptrend.
The last time the RSI was this low, the price traded at $0.14. This time, analysts explain that Dogecoin dropping to $0.20 means higher lows. The benefit of higher lows is that they often lead to higher highs.
If Dogecoin's price increases by another 70% from here, it could eventually rebound to a high of $0.34 before losing momentum again. However, this would still place its price over 50% lower than its historical high of $0.74, which was pulled back in 2021 and remains the highest point for this meme coin.
As for the performance of altcoins so far this month, Dogecoin has started to give back some of its gains after a 27.1% rise at the end of July. According to CryptoRank, the cryptocurrency has decreased by 5.31% this month and is still rising.
This is not uncommon, as August has historically been one of the most pessimistic months for Dogecoin prices. In fact, if this trend continues, Dogecoin investors may see an average drop of 10% this month, ultimately closing at a loss.
