XRP and Dogecoin Face Brutal August—Here’s Why the Pain Won’t Stop Soon

Memecoins and payment tokens are getting crushed—and the charts show no mercy.

XRP and Dogecoin holders buckle up: August is shaping up to be a bloodbath. With zero bullish catalysts on the horizon, these 'blue-chip' altcoins are leaking value faster than a DeFi protocol with unaudited code.

The grim reality? Technicals suggest the downtrend has teeth. No magical support levels. No 'oversold' bounce. Just a slow grind toward lower lows—the kind that turns diamond hands into panic sellers.

And let's be honest: when your biggest advocate is a Tesla CEO who changes his mind faster than a yield farmer chasing APYs, maybe it's time to reassess.

Pro tip: In crypto winter, the 'moon' is just another word for 'liquidation price.'

Image source: Getty Images.

XRP's and Dogecoin's adoption rates aren't as impressive as you might think

Aside from the appeal of decentralization (XRP is only partially decentralized since it's the bridge currency developed for Ripple's payment network), one of the primary selling points of cryptocurrencies and their underlying blockchain networks is the ability to facilitate peer-to-peer and/or cross-border transactions faster, safer, and considerably cheaper than existing methods.

XRP, which is the bridge currency used in cross-border transactions for financial institutions, and Dogecoin, which is primarily used for peer-to-peer and merchant transactions, have seen their usage rates grow over time.

However, adoption rates remain relatively tame. For instance, in the neighborhood of 300 global financial institutions are using RippleNet for cross-border payments. But what's worth noting is that not all of these banks are required to use XRP as the intermediary currency. While RippleNet grows in adoption, demand for XRP isn't increasing on a 1-for-1 basis.

As for Dogecoin, it received a boost whenCEO Elon Musk, who's been a longtime dogecoin enthusiast and small stakeholder, announced his company would accept DOGE for select goods. But outside of Tesla, DOGE token use cases are minimal, with around 2,500 merchants accepting it in 2024, based on data collected by Cryptopolitan.

Although traditional payment methods are costlier and slower, they're still the undisputed top option.

Neither XRP Ledger nor Dogecoin offers unbeatable networks

To build on the first point, neither XRP Ledger nor Dogecoin offers blockchain networks that stand out as unbeatable.

To give credit where credit is due, these blockchain networks are considerably faster and cheaper than the Society for Worldwide Interbank Financial Telecommunication, or SWIFT, which has been the standard for cross-border transactions for decades. Instead of waiting days for traditional payments to settle, XRP Ledger can validate and settle payments in three to five seconds for a fraction of a penny.

Meanwhile, Dogecoin averages a settlement time of roughly one minute, with most transactions costing in the neighborhood of $0.02.

However,offers the ability to complete international transactions for a fraction of a cent in an average settlement time of 400 milliseconds. Similarly,, which is more commonly used for peer-to-peer transactions in similar fashion to DOGE, can settle for a fraction of a penny in five seconds or less.

Buy the rumor, sell the news

Another reason to expect XRP and Dogecoin to struggle mightily in August, if not well beyond, is the common financial markets idiom, "buy the rumor, sell the news."

Both tokens had tangible catalysts entering 2025. President Trump's November victory paved the way for the resignation of now-former U.S. Securities and Exchange Commission Chair Gary Gensler, who was generally skeptical of digital assets and had ongoing litigation against Ripple. With Gensler leaving office on Jan. 20, Trump's inauguration date, it rolled out the red carpet for Ripple's litigation woes to be cleared up.

As for Dogecoin, Trump's victory led to Elon Musk's being used as a special employee for the Department of Government Efficiency (DOGE). Although this "DOGE" has absolutely nothing to do with actual Doge tokens, Musk's having the president's ear was viewed as a positive for all digital assets -- especially Dogecoin.

The problem is that these catalysts are now firmly in the rearview mirror. Elon Musk is no longer part of DOGE, and Gensler left his role more than six months ago. With no clear immediate catalysts for XRP or Dogecoin, it may be time for investors to "sell the news."

Image source: Getty Images.

Crypto is tethered to an exceptionally pricey stock market

Perhaps the most-damning of all reasons XRP and Dogecoin can tumble in August, and possibly for many months thereafter, is the inextricable link between the crypto market and stock market.

When cryptocurrencies were initially conceived, they were prominently viewed as a separate asset class that, in some instances, WOULD act as a hedge against inflation and an alternative to stocks. But as time has passed, digital assets have ebbed and flowed in lockstep with equities.

The good news here is that Wall Street's major stock indexes spend a disproportionate amount of time climbing, rather than falling. Based on data published by Bespoke Investment Group in June 2023, the average S&P 500 bear market since the start of the Great Depression in September 1929 has lasted only 286 calendar days. In comparison, the typical S&P 500 bull market endured for 1,011 calendar days, or approximately 3.5 times as long as the average bear market.

But there's an asterisk that should be placed next to the current S&P 500 bull market. Specifically, this is the third-priciest continuous bull market when back-tested 154 years, based on data from the Shiller price-to-earnings ratio. When valuations become extended to the upside as they are now, it's simply a matter of when, not if, stocks endure a sizable downturn.

If the stock market corrects lower, there's a very high probability XRP and Dogecoin will follow suit at an accelerated pace.