Dogecoin (DOGE) suffered a heavy blow at the beginning of August, dropping nearly 5% within 24 hours, and extending a cumulative decline of 12% over the past week. A large-scale sell-off caused the price to fall below the $0.205 support level, with trading volume surging — daily trading volume once approached 878 million tokens. Such a huge trading volume indicates a clear increase in institutional fund outflows and overall market risk-averse sentiment.
Historical data shows that August is not favorable for Dogecoin, with negative average monthly returns for three consecutive years. The situation is similar this time, and analysts warn that unless DOGE quickly rebounds to key points, it may continue to decline to $0.185. As bearish sentiment spreads, the market focus shifts to other popular meme coins like XRP and SHIBA INU, which also show signs of weakness.
XRP struggles to hold the $3.00 level.
Ripple's flagship token remains dominant in 2025, thanks to the gradually clarifying regulatory environment. However, recent price trends indicate that potential risks are accumulating. After rebounding from a low of $2.80, XRP again faced resistance near $3.09, while support is located below $2.91. Analysts point out that the large number of short positions in the market and the frequent transfers of over $50 million in whale funds are exacerbating volatility.
Market models predict that XRP may oscillate between $2.94 and $3.39 in August, but some investors bet that if the market environment improves, XRP could break through $4.45. Nevertheless, unless trading volume increases and institutional sentiment improves, the short-term trend remains uncertain, and a drop below $2.91 could trigger a wave of selling.
Despite SHIB facing losses, selling pressure remains heavy.
The token is currently priced at approximately $0.0000122, down over 35% this year, and has dropped nearly 8% in the past 24 hours. Despite the recent destruction of over 600 million tokens, sellers still dominate the market. The bearish trend has persisted for months.
Technical charts reveal a glimmer of hope: if SHIB successfully breaks through the resistance at $0.000013, it could see an increase of about 24%, reaching $0.000015. However, influenced by the decline of cryptocurrency-related stocks and the withdrawal of speculative funds, traders remain cautious. Most analysts predict that SHIB may continue to weaken before a significant rebound occurs.
Summary:
Whale funds are repositioning, increasing market volatility. The meme coin market is facing a critical choice, with Dogecoin (DOGE) prices declining, Ripple (XRP) gathering momentum, and SHIB still showing a downward trend. Although there may still be fluctuations in the short term, in the long run, opportunities are shifting towards more mature and resilient ecosystems.
ETF expert Nate Geraci predicts that with Ripple's appeal officially rejected, BlackRock may submit an XRP ETF application. Multiple analysts have also noted that as legal issues become clearer, this largest asset management company globally may expand its cryptocurrency ETF product line beyond Bitcoin and Ethereum.
Experts call for BlackRock to advance the XRP ETF application.
ETF Store President Nate Geraci recently stated on social platform X that BlackRock may apply for an XRP ETF through its iShares division. He believes the timing is very ideal, suggesting that BlackRock may have been waiting for legal clarity and will act quickly once conditions are ripe.
However, Bloomberg's ETF analyst Eric Balchunas is cautious about this. He expressed uncertainty about whether the relevant applications will appear soon: "I think they are quite satisfied with the existing two products (Bitcoin and Ethereum ETFs)." He also added that the investment returns of other cryptocurrencies, besides BTC and ETH, are weakening, although this is more of his intuitive judgment rather than based on solid data.
With Ripple and the SEC jointly requesting the dismissal of all remaining appeals, the long-standing litigation that began in December 2020 has finally come to an end. The court confirmed that XRP is not classified as a security in retail transactions.
As the shadow of litigation dissipates, the space for U.S. exchanges and financial products (including ETFs) to list XRP will greatly increase, and Ripple will also be able to promote its business development more freely. Before announcing the rejection of the request, Ripple announced that it would invest $200 million to acquire Rail to enhance the infrastructure of its RLUSD stablecoin project.
The market quickly reacted to the outcome of the XRP lawsuit.
According to CoinMarketCap data, XRP's price has risen over 13.27% in 24 hours, far exceeding the overall cryptocurrency market's average increase of 3.75%.
Data from South Korean exchanges show a surge in XRP trading volume, with an increase of up to 1,211%.
The derivatives market is also showing clear bullish signals:
On the Deribit platform, traders bought over 100,000 call and put contracts at exercise prices of $3.10 and $3.20, with a total premium reaching $416,000. This indicates that market volatility may further intensify in the coming weeks.
On that day, net inflows of funds into XRP exceeded $42 million, with spot prices briefly breaking through $3.30, peaking at $3.32, and market capitalization soaring to $22 billion.
Notably, after the announcement, the probability of XRP ETF approval on Polymarket surged to 88%. Previously, due to SEC Commissioner Caroline Crenshaw's opposition to some cryptocurrency proposals, this probability had dropped to 65%. However, analysts like Balchunas are not worried about this. He pointed out that Crenshaw has consistently opposed cryptocurrency ETFs and is usually overruled by other commissioners.
Many supporters believe that BlackRock's launch of the XRP ETF has significant strategic importance, not only breaking the monopoly of BTC and ETH but also enriching the product line to better meet the diversified asset allocation needs of institutional investors. With Ripple's lawsuit concluded, the realistic possibility of the XRP ETF application has also significantly increased.
Like and follow Little Horse for daily updates on the cryptocurrency world!!
