Emily Walker
Dogecoin, famed as the first meme cryptocurrency, has recently undergone a significant decline in both market cap and social sentiment, as reported by the crypto analytics firm Santiment. The cryptocurrency’s value has plummeted by 26% since reaching a peak just a month ago, causing a drop in public interest. Nonetheless, the analysts at Santiment suggest that this downturn might indicate potential for Dogecoin’s upward movement in the future.
Status of Dogecoin Sentiment
Following a brief spike in November 2024, Dogecoin has faced challenges in regaining its former highs. Interestingly, the coin saw a temporary boost earlier this year when Elon Musk changed his X social media profile name to “Kekius Maximus,” linked to a new meme coin featuring a frog theme.
This name change led to a brief surge in Dogecoin’s price; however, the increase did not last long. Ultimately, the coin lost 28% of its market capitalization amid a notable decline in engagement on social media platforms and waning public interest.
Crypto analyst Brainq from Santiment reports that Dogecoin’s popularity has reached its lowest level in the past year. He rates the coin’s crowd sentiment at just 1 out of 5, indicating a lack of excitement among investors and traders. This sentiment stands in stark contrast to more positively rated cryptocurrencies, such as XRP and Solana (SOL), which scored a 4 out of 5.
Variations in social sentiment are common for meme coins, which rely heavily on market trends and public activity. Earlier in 2024, Dogecoin’s visibility on social media surged in response to news about Musk’s Department of Government Efficiency (D.O.G.E) initiative and Donald Trump’s election win, propelling its price above the $0.4 threshold. However, with social sentiment currently low, further price drops and volatility seem probable. In contrast, Santiment suggests that this current sentiment downturn could pave the way for a significant price recovery.
Implications of the DOGE Sentiment Decline
While Dogecoin’s waning sentiment might appear to be a negative indicator, Santiment claims it could offer a chance for investors willing to accept risk. Analyst Brianq points out that low sentiment often aligns with undervalued periods, providing an opportunity to accumulate tokens ahead of potential price recovery.
If the broader cryptocurrency market trends upward, Dogecoin could see a notable turnaround, bouncing back from its recent bearish momentum. Essentially, analysts suggest that the current low social interest in Dogecoin represents a classic investment principle of ‘buy low, sell high’ for those ready to take a calculated gamble.