'Ruff' Month? Dogecoin's Price Slid 36 Percent in October

Negative 'Ruff' Month? Dogecoin's Price Slid 36 Percent in October

Market data shows that the meme-themed dogecoin was the worst-performing coin out of the world's largest 25 cryptocurrencies by capitalization.

The cryptocurrency - derided as a joke by some, beloved by others - first hit the market in 2014 and has since been through a series of boom-and-bust cycles ever since in terms of overall market performance.

The cryptocurrency's most recent price boom began at the end of August and extended into early September, when its price surged over 160 percent to reach a six-month high of $0.0068 on September 10th, according to data from CoinMarketCap.

Those fortunes reversed in October, resulting in a 36 percent monthly loss that brought the coin's price more than 50 percent below that September high-water mark.

And as can be seen in the chart below, these cyclical price movements are nothing new to DOGE.

According to data from Coinmetrics.io, DOGE often provides a 30-day return in excess of 100 percent as depicted by the thin orange line. DOGE's price vs. BTC is comprised of the orange area in the background, which further shows the cyclical nature of its price action.

In fact, 2015 was the only year to not include a 30-day return above 100 percent, although it did come close with a 94 percent return in a 30-day span.

What's more, the 30-day percent returns have exceeded 300 percent on multiple occasions since 2014.

As can be seen, the booms are often followed by busts when the monthly returns hover just above or significantly below zero. This metric entered negative territory on October 10th and has yet to return to a positive value.

Indeed, it was a poor month for DOGE in terms of percent change, but with 22 of the top 25 world's largest cryptocurrencies reporting losses over the course of October, DOGE's performance wasn't unique.

Monthly performance

Monthly performance: -36 percent

Closing price on October 31: $0.003764

Rank as per market capitalization: 23

DOGE was in a slow but steady decline since the month began at a price of $0.0058, until it concluded at a 36 percent lower price of $0.003764.

From open to close, October was DOGE's worst-performing month since last March, when it fell 52 percent.

In terms of monthly trading volume, October's $403 billion was just 30 percent of the prior month's volume of $1.2 billion and its lowest since July, according to data from CoinMarketCap.

Monthly Chart

On August 31, DOGE's price broke bullish out of a falling wedge (bullish reversal pattern) which set the stage for its latest "boom" cycle.

As with all of DOGE's boom cycles, though, it eventually topped out on Sept. 10 at the price of $0.007, according to data from Poloniex, and the price began its descent thereafter.

Using the Fibonacci retracement tool by connecting the low of $0.0023 on Aug. 14 to its $0.007 peak, it can be seen that price is hovering near the golden ratio of 0.618 retracement, which may offer support for a temporary up move. That said, the price has found acceptance below the 200-day EMA, so a sustained rally will not come easily.

Coincidentally, the 0.618 Fibonacci is located at the same price level as the high of DOGE's previous bull cycles, $0.0041. Resistance tends to flip to support once it's broken, which bodes well for the immediate price action of DOGE.

What's more, the relative strength index (RSI) is approaching oversold territory, meaning sellers could lose strength in the near-term. The moving average convergence and divergence indicator (MACD) is echoing similar sentiments and the short-term bullish case would strengthen if the indicators produce a bullish crossover in the next few days.

It should be noted that DOGE tends to retrace significantly after a strong incline, sometimes beyond 100 percent, so history would suggest that it's unlikely that the price holds its current level for too long.

If the daily Guppy Multiple Moving Average indicator (GMMA) flips red, it will likely confirm there is more downside action ahead for DOGE, in which case the next Fibonacci retracement of 0.786 near the price level $0.0030 could be looked to for support.

Disclosure: The author holds BTC, AST, REQ, OMG, FUEL, 1st and AMP at the time of writing.

Dogecoin image via Shutterstock; Charts via TradingView

Join 10,000+ traders who come to us to be their eyes on the charts and sign up for Markets Daily, sent Monday-Friday. By signing up, you agree to our terms & conditions and privacy policy

The leader in blockchain news, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups.

11/01/2018 / 20:45:43 Source: coindesk

BTC
1 BTC=$5,613.47
XRP
1 XRP=$0.5064
ETH
1 ETH=$176.39
XUC
1 XUC=$3.52
BCH
1 BCH=$363.62
EOS
1 EOS=$4.69

News Feed 50

Cryptoglobe Neutral - Buying Bitcoin’s Recent Dip Could Be Profitable, Chart Watcher Points Out read more.
11/18/2018 / 04:00:17
Cryptoglobe Neutral - Aeternity, Dacade Launch Blockchain Course That Rewards Students With Crypto read more.
11/18/2018 / 02:08:02
Newsbtc Neutral - #XRP/USD Price Analysis: CNBC Host Recommend Buying Ripple read more.
11/18/2018 / 02:05:23
Newsbtc Neutral - #BTC/USD Price Analysis: ECB Official Says Bitcoin a Clever Idea as Prices Steady read more.
11/18/2018 / 02:00:52
Livebitcoinnews Neutral - Bitcoin Permabull Tom Lee Slashes End of Year Price Forecast to $15,000 read more.
11/18/2018 / 02:00:01
Ccn Neutral - Lawyer: Phase Two of SEC’s Enforcement is Slow, Painful Grind For Crypto read more.
11/18/2018 / 01:30:12
Bitcoin.Com Neutral - More Cryptocurrency Exchanges Opening in Thailand, SEC Warns Approvals Needed read more.
11/18/2018 / 01:20:31
Ccn Neutral - Monero: Unsung Crypto Developer Wins Prestigious Award read more.
11/18/2018 / 00:15:13
Ccn Neutral - Crypto’s Too Expensive? Binance Sent $600 Million in Bitcoin for Just $7 read more.
11/17/2018 / 23:20:20
Bitcoinist Neutral - Heat Your Home or Business With a Mining Rig read more.
11/17/2018 / 23:00:50
Cryptoglobe Neutral - Azerbaijan Won’t Issue a State-Backed Cryptocurrency, Central Bank Reveals read more.
11/17/2018 / 23:00:31
Livebitcoinnews Neutral - DASH Sent Three Million Transactions in a One-Day Stress Test read more.
11/17/2018 / 23:00:14
Cointelegraph Neutral - Ripple Continues to Rebound, While Most Major Cryptocurrencies See Mild Wave of Red read more.
11/17/2018 / 22:52:00
Ccn Neutral - Litecoin’s Franklyn Richards Says Cryptocurrency Will Be Institutionalized — And That’s OK read more.
11/17/2018 / 22:01:55
Cryptoglobe Neutral - UK Regulator Warns of Fraudulent Crypto Website Posing As Established UK Investment Firm read more.
11/17/2018 / 21:30:36
Themerkle Neutral - Bitcoin Price Watch: Is the Currency Set to Drop Even Further? read more.
11/17/2018 / 21:24:56
Bitcoin.Com Positive - The Cobo Vault Hardware Wallet Will Outlive You read more.
11/17/2018 / 21:20:12
Cryptopotato Neutral - HODL: World’s First Crypto ETF Goes Live Next Week read more.
11/17/2018 / 20:46:40
Ccn Neutral - New York: DFS Grants BitLicense to Crypto Custodian read more.
11/17/2018 / 20:45:20
Themerkle Neutral - XRP Price Heads to $0.5 as Market Cap Gap Over Ethereum Widens read more.
11/17/2018 / 20:12:14
Cryptoglobe Neutral - Job Data: More Empoyers Looking for Blockchain Devs, Interest Waning read more.
11/17/2018 / 20:00:42
Bitcoinist Neutral - How To Buy S&P 100 Stocks With Bitcoin read more.
11/17/2018 / 20:00:06
Livebitcoinnews Neutral - Ripple’s XRP Leapfrogs Past Ethereum Marketcap by More Than $1 Billion read more.
11/17/2018 / 20:00:03
Themerkle Neutral - Hashrate of BCHABC and BCHSV Nearly Reaches Parity Ahead of Network Stress Test read more.
11/17/2018 / 19:55:38
Cointelegraph Neutral - ‘Bitcoin’s No Longer Boring,’ Price Heading Towards $1.5K, Say Bloomberg Analysts read more.
11/17/2018 / 19:40:00
Ccn Neutral - $50 Million ICO Lands Crypto Lender SALT in Hot Water with SEC: WSJ read more.
11/17/2018 / 19:35:25
Cryptoglobe Neutral - Defendant in First ICO Fraud Case Pleads Guilty read more.
11/17/2018 / 19:20:45
Bitcoin.Com Neutral - Crypto Experts From Sanctioned Countries to Receive Training in Crimea read more.
11/17/2018 / 19:20:08
Ccn Neutral - Hash Wars: Calvin Ayre & CoinGeek Refuse to Concede Defeat in Bitcoin Cash Fork Fight read more.
11/17/2018 / 18:30:31
Cryptoglobe Neutral - Bitcoin Bull Tom Lee Cuts His Year-End Bitcoin Price Prediction to $15,000 read more.
11/17/2018 / 18:30:02
Ccn Neutral - Crisis: After $30 Billion Invested, Most Crypto ICOs Have Nothing to Show read more.
11/17/2018 / 17:48:07
Trustnodes Neutral - Switzerland Green Lights World’s First Crypto ETF to be Listed Next Week read more.
11/17/2018 / 17:32:46
Bitcoin.Com Neutral - Another ‘Satoshi Message’ Attempts to Sway Public Opinion, But Fails read more.
11/17/2018 / 17:20:25
Cointelegraph Neutral - Fundstrat’s Tom Lee Predicts Bitcoin Recovery, But Lowers End-Year Target to $15K read more.
11/17/2018 / 17:19:00
Cryptoglobe Neutral - Target Claims Bitcoin Scam Tweet Came Through Hacked Third-Party Provider read more.
11/17/2018 / 17:00:53
Livebitcoinnews Neutral - Eight Arrested in Japan on Suspicion of Running Multi-million-dollar Crypto Pyramid Scheme read more.
11/17/2018 / 17:00:30
Coinnounce Neutral - Why Bitcoin Cash SV is the real winner of the Hash War read more.
11/17/2018 / 16:48:31
Cointelegraph Neutral - CryptoRuble: How Stable Could Russian National Stablecoin Be? read more.
11/17/2018 / 16:32:00
Themerkle Neutral - Exchanges Start Labeling BCHABC as “BCH” Despite Ongoing Hash War read more.
11/17/2018 / 16:30:18
Blokt Neutral - White Company’s Blockchain AI Division Acquired by Apis Capital Management read more.
11/17/2018 / 16:29:31
Coinnounce Neutral - Bitcoin Cash BCH Hash Wars: Who is winning? read more.
11/17/2018 / 16:15:20
Cryptoglobe Neutral - Bail Bloc is Donating Monero to Bail Out Detainees in ICE's Pre-Trial Incarceration read more.
11/17/2018 / 15:45:40
Ccn Neutral - Debunked: Top European Central Bank Official’s False Arguments Against Bitcoin read more.
11/17/2018 / 15:35:45
Bitcoin.Com Neutral - Hash Wars: BCH Proponents Confident a Resolution Is in Sight read more.
11/17/2018 / 15:15:51
Cointelegraph Neutral - ICO Performance in Q3 2018 Saw ‘Overall Disappointment,’ Study Shows read more.
11/17/2018 / 15:13:00
Cryptoglobe Neutral - Bitcoin Cash Civil War, Day 2 Recap read more.
11/17/2018 / 15:10:45
Trustnodes Neutral - Bitcoin at a $100 Premium Against Brexit Pound read more.
11/17/2018 / 14:49:24
Themerkle Neutral - New Bitcoin ABC Client Introduces a Controversial Checkpointing System read more.
11/17/2018 / 14:30:27
Cryptoglobe Neutral - Venezuela's Largest Department Store is Accepting Bitcoin Payments read more.
11/17/2018 / 14:15:14
Livebitcoinnews Neutral - NYDIG Gets License to Operate Cryptocurrency Business in New York read more.
11/17/2018 / 14:00:07
Negative
3.6%
Neutral
94.9%
Positive
1.3%
Mixed
0.1%

Latest comments:

4 min
Hey Sam, how is it going? But I must explain to you how all this mistaken idea of denouncing of a pleasure and praising pain was born
3 min
Pretty good. Doing my homework.. No one rejects, dislikes, or avoids pleasure itself, because it is pleasure, but because
2 min
Any chance to go out? To take a trivial example, which of us ever undertakes laborious physical exercise, except to obtain some advantage
2 min
.. Maybe 40-50 mins. I don't know exactly. On the other hand, we denounce with righteous indignation and dislike men who are so beguiled
1 min
Anyway sounds great! These cases are perfectly simple and easy to distinguish.