The well-known cryptocurrency Dogecoin, which originated from a meme and is among the most popular digital coins, has seen a decrease in both social interest and market value over the past few weeks. According to recent findings by crypto analytics firm Santiment, there’s been a significant drop (26%) in the price of DOGE since its peak last month. However, despite this downward trend, analysts at Santiment think that this dip in public attention might actually bode well for Dogecoin’s future development.
Dogecoin Sentiment Hits New Low
Dogecoin has found it challenging to regain its former peak levels after experiencing a brief spike in November 2024. Notably, even at the beginning of the year, there was a minor increase when Elon Musk temporarily altered his social media handle on X platform to “Kekius Maximus,” which is a reference to a new coin based on a frog meme.
Following Elon Musk’s unexpected name alteration, the value of Dogecoin temporarily skyrocketed, yet this surge proved fleeting. Ultimately, the meme currency lost approximately 28% of its market worth as it underwent a steep downturn in social media engagement and overall public attention.
As per Santiment’s crypto analyst Brainq, the collective feeling among Dogecoin investors and traders is at its lowest in the past year, with a sentiment rating of only 1 out of 5. This low score suggests a diminished level of excitement and participation from the community. Interestingly, this sentiment contrasts sharply with the more positive ratings given to other well-known cryptocurrencies such as XRP and Solana (SOL), which both received scores of 4 out of 5.
It’s not surprising to see changes in public opinion towards meme coins, as they are largely influenced by market movements and social interactions. In the early part of 2024, Dogecoin saw a surge in popularity on social media platforms due to two key events: Elon Musk’s Department of Government Efficiency (D.O.G.E) proposal and Donald Trump’s win in the U.S. presidential elections.
Currently, the surge in popularity for the meme coin has coincided with a significant increase in its price, pushing it significantly beyond $0.4. But given the current low point in social sentiment, it appears that Dogecoin might experience further price drops and heightened volatility. Interestingly, Santiment predicts that this drop in Dogecoin’s social sentiment could instead lead to a significant price surge.
Why DOGE Sentiment Crash Might Signal An Opportunity
Although Dogecoin’s negative popularity trend might appear as a warning sign for pessimistic investors, Santiment suggests it could offer a prospect for daring investors. According to Brianq, when public opinion is low, it frequently aligns with underpricing, providing a possibility to gather tokens before the price increases again.
According to Santiment’s analysis, if the overall crypto market recovers, Dogecoin (DOGE) might undergo a substantial price increase, moving it away from downward trends and toward an upward trajectory. In other words, the analyst’s findings imply that the drop in Dogecoin’s social activity could be a prime opportunity for investors ready to make a strategic investment, potentially reaping rewards by buying low and selling high.
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2025-01-10 05:11