Dogecoin, one of the most popular cryptocurrencies and the first meme coin, has experienced a crash into public sentiment and market cap in recent weeks. According to a new report by crypto analytics company Santiment, public attention on DOGE is waning, driven by its 26% price drop since its peak one month ago. Despite this bearish trend, Santiment analysts believe that this drop in sentiment could be a positive sign Future growth of Dogecoin.
Dogecoin Sentiment Hits New Low
Dogecoin has struggled to find past highs behind it walking slowly in November 2024. Interestingly, the meme’s coinage re-emerged a bit earlier this year when Elon Musk temporarily changed his X social media handle to ”Kekius Maximus,” a frog-themed meme coin.
After Musk’s sudden name change, Dogecoin experienced a sharp price increase, but it was short-lived. The meme coin ended up wiping 28% of its market capitalization while getting a a big drop in social media activities and in the general public interest.
According to Sentiment’s crypto analyst Brainq, Dogecoin crowd sentiment is at its lowest level in the last year. Analyst values Dogecoin’s crowd sentiment is just 1 in 5, indicating a lack of enthusiasm and engagement from investors and traders. Dogecoin’s social sentiment results are also very different from the more optimistic ratings of other popular cryptocurrencies such as XRP again Solana (SOL)scored 4 out of 5.
Fluctuations in public sentiment is not unusual for meme coins, which are mainly driven by market trends and social activities. In early 2024, DOGE’s popularity across social media increased dramatically following the news that Musk’s Department of Government Excellence (DOGE) the proposal and the victory of Donald Trump in the American presidential election.
At the time, the growing popularity of the meme coin was accompanied by an increase in its price, pushing it above the $0.4 level. However, with Community sentiment is now at a remarkable lowit appears that DOGE may face further price declines and increased volatility. Contrary to this view, Santiment suggests that Dogecoin’s sentimental crash may be human based. a large price increase.
Why the DOGE Sentiment Crash May Show an Opportunity
While Dogecoin sentiment decline may be seen as a bearish signal, Santiment says it may provide an opportunity for risk-tolerant investors. Brianq notes that low crowd sentiment often accompanies periods of indifference, which can create opportunity collect tokens before the price goes back.
The Santiment analyst predicts that if the broader crypto market rebounds, DOGE may face a significant reversal, pushing its price out of bearish trends to the upside. Basically, the analyst’s report suggests that the decline in Dogecoin’s social interest may be a classic case of ‘buy low, sell high’ for investors willing to take a calculated risk.
The featured image was created with Dall.E, a chart from Tradingview.com