Dogecoin, some of the fashionable cryptocurrencies and the primary meme coin, has skilled a crash in social sentiment and market cap in current weeks. According to a brand new report by crypto analytics agency Santiment, the general public’s consideration on DOGE is dwindling, pushed by its 26% drop in worth since its worth excessive one month in the past. Despite this bearish development, Santiment analysts imagine that this decline in sentiment might be signal for Dogecoin’s future growth.
Dogecoin Sentiment Hits New Low
Dogecoin has struggled to reclaim previous earlier highs following its brief surge in November 2024. Interestingly, the meme coin additionally noticed a slight uptick firstly of the yr when Elon Musk quickly modified his X social media profile identify to ”Kekius Maximus,” a brand new frog-themed meme coin.
After Musk’s sudden identify change, Dogecoin skilled a pointy worth surge, however it was short-lived. The meme coin finally erased 28% of its market capitalization whereas experiencing a dramatic decline in social media exercise and common public curiosity.
According to Santiment crypto analyst Brainq, Dogecoin’s crowd sentiment is at its lowest level over the previous yr. The analyst rates Dogecoin’s crowd sentiment at simply 1 out of 5, signaling a scarcity of enthusiasm and engagement from traders and merchants. Dogecoin’s social sentiment outcomes additionally distinction considerably with the extra optimistic rankings of different fashionable cryptocurrencies like XRP and Solana (SOL), which scored 4 out of 5.
Fluctuations in social sentiment shouldn’t be uncommon for meme cash, that are primarily pushed by market traits and social exercise. Earlier in 2024, DOGE’s recognition throughout social media grew considerably following information of Musk’s Department of Government Efficiency (D.O.G.E) proposal and Donald Trump’s victory within the U.S. presidential elections.
At the time, the meme coin’s rising recognition had coincided with a pointy rise in its worth, pushing it effectively above the $0.4 degree. However, with social sentiment now at a notable low point, it appears possible that DOGE might face additional worth declines and elevated volatility. Contrary to this outlook, Santiment means that Dogecoin’s social sentiment crash might function a springboard to a major price rebound.
Why DOGE Sentiment Crash Might Signal An Opportunity
While Dogecoin’s declining sentiment might seem to be a bearish sign, Santiment argues it might current a chance for risk-tolerant traders. Brianq notes that low crowd sentiment typically coincides with durations of undervaluation, probably creating an opportunity to accumulate tokens earlier than the worth rebounds.
The Santiment analyst predicts that if the broader crypto market traits upwards once more, DOGE might expertise a major reversal, pushing its worth away from bearish traits to the upside. Essentially, the analyst’s report means that the decline in Dogecoin’s social curiosity might be a basic case of ‘buy low, sell high’ for traders prepared to take a calculated danger.
Featured picture created with Dall.E, chart from Tradingview.com
