- Historical data suggests the sentiment may precede a price hike to $0.27
- Significant drop in social volume could imply a potential buying opportunity
As a researcher with experience in cryptocurrency market analysis, I find the current situation surrounding Dogecoin intriguing. The recent dip in Weighted Sentiment to -1.562 and the historical data suggesting that this sentiment may precede a price hike to $0.27 are important indicators.
As a crypto investor, I’ve noticed an intriguing development regarding Dogecoin (DOGE). According to my analysis of Santiment’s latest data, the sentiment score for this cryptocurrency has dipped below -1.562 for the first time since September 2023. This negative weighted sentiment is a significant shift from the more positive readings we’ve seen in the past.
In simpler terms, Weighted Sentiment refers to the mean expression of opinions towards a particular asset based on social media comments.
Hate could be fuel
I analyzed the social media buzz surrounding Dogecoin on May 24th, and the news of Kabosu’s passing seemed to spark a surge in positive comments. However, my closer examination revealed an intriguing discrepancy – for every favorable comment about DOGE, there were approximately 1.56 negative ones contrasting the same sentiment.
Normally, when negativity prevails in the market, the demand for a memecoin may decrease as shown on the price charts. But when it comes to Dogecoin, past trends tell a different story.
In September 2023, for example, the DOGE price was around $0.064 when its value was comparable to its current metric.
As a crypto investor, I’ve seen it before – an altcoin’s price suddenly spiking despite widespread negativity within the community. This unexpected price surge is often referred to as a “hated rally.” When pessimism around a particular cryptocurrency fuels such a price hike on the charts, that’s what we call it. In my experience, these rallies can be quite exhilarating!
As a crypto investor, I’ve noticed that while historical patterns don’t always repeat exactly, they can provide valuable insights. If DOGE‘s price history follows a similar pattern to what we’ve seen before, it could reach a yearly high of around $0.27 by the start of the next quarter. Right now, DOGE is priced at $0.16.
As an analyst, I’d like to add that based on data from IntoTheBlock, over 84% of Dogecoin (DOGE) holders saw profits when the price reached the previously mentioned level.
If the value of the cryptocurrency increases as anticipated, an additional 1.2 billion coins could become profitable. For all coins in circulation to be in profit, the memecoin’s price must reach a level of $0.32.
Does Bitcoin have DOGE’s key?
As a researcher studying the DOGE market, I examined the average price for approximately 755,230 addresses holding DOGE coins. However, it’s important to note that this figure doesn’t exist in isolation. The value of DOGE could be influenced by the fluctuations of Bitcoin [BTC] as well.
AMBCrypto pointed out the connection between Bitcoin (BTC) and Dogecoin (DOGE) due to their strong correlation at the time of publication. Specifically, the correlation coefficient between these two cryptocurrencies stood at 0.86. In contrast, Ethereum (ETH) and most other altcoins showed much weaker correlations with Bitcoin.
As a market analyst, I can observe that Dogecoin tends to follow Bitcoin’s price movements more closely than it does for other cryptocurrencies.
Recent findings from on-chain data indicate that Bitcoin’s price is currently at a promising accumulation stage. Based on this observation, it’s plausible to assume that Dogecoin (DOGE) may be experiencing similar conditions. Consequently, if Bitcoin experiences a significant price increase, DOGE’s value could potentially follow suit.
As a researcher, I also examined the social volume of the memecoin in question. Currently, this indicator stands at 120, a significant drop from its previous level of 614.
Realistic or not, here’s DOGE’s market cap in BTC terms
This price drop may fuel doubts about the demand for this coin, but it could also present a valuable buying chance for those who are hesitant about its immediate market direction.
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2024-05-26 03:03