Dogecoin, one of the most popular cryptocurrencies and the first meme coin, has experienced a crash in social sentiment and market cap in recent weeks. According to a new report by crypto analytics firm Santiment, the public’s attention on DOGE is dwindling, driven by its 26% drop in value since its price high one month ago. Despite this bearish trend, Santiment analysts believe that this decline in sentiment could be a good sign for Dogecoin’s future growth.
Dogecoin Sentiment Hits New Low
Dogecoin has struggled to reclaim past previous highs following its brief surge in November 2024. Interestingly, the meme coin also saw a slight uptick at the start of the year when Elon Musk temporarily changed his X social media profile name to ”Kekius Maximus,” a new frog-themed meme coin.
After Musk’s sudden name change, Dogecoin experienced a sharp price surge, but it was short-lived. The meme coin eventually erased 28% of its market capitalization while experiencing a dramatic decline in social media activity and general public interest.
According to Santiment crypto analyst Brainq, Dogecoin’s crowd sentiment is at its lowest point over the past year. The analyst rates Dogecoin’s crowd sentiment at just 1 out of 5, signaling a lack of enthusiasm and engagement from investors and traders. Dogecoin’s social sentiment results also contrast significantly with the more optimistic ratings of other popular cryptocurrencies like XRP and Solana (SOL), which scored 4 out of 5.
Fluctuations in social sentiment is not unusual for meme coins, which are primarily driven by market trends and social activity. Earlier in 2024, DOGE’s popularity across social media grew significantly following news of Musk’s Department of Government Efficiency (D.O.G.E) proposal and Donald Trump’s victory in the U.S. presidential elections.
At the time, the meme coin’s rising popularity had coincided with a sharp rise in its price, pushing it well above the $0.4 level. However, with social sentiment now at a notable low point, it seems likely that DOGE could face further price declines and increased volatility. Contrary to this outlook, Santiment suggests that Dogecoin’s social sentiment crash could serve as a springboard to a major price rebound.
Why DOGE Sentiment Crash Might Signal An Opportunity
While Dogecoin’s declining sentiment may seem like a bearish signal, Santiment argues it could present an opportunity for risk-tolerant investors. Brianq notes that low crowd sentiment often coincides with periods of undervaluation, potentially creating a chance to accumulate tokens before the price rebounds.
The Santiment analyst predicts that if the broader crypto market trends upwards again, DOGE could experience a significant reversal, pushing its price away from bearish trends to the upside. Essentially, the analyst’s report suggests that the decline in Dogecoin’s social interest could be a classic case of ‘buy low, sell high’ for investors willing to take a calculated risk.
Featured image created with Dall.E, chart from Tradingview.com
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