Dogecoin, one of the most popular cryptocurrencies and the first meme currency, has seen a fall of social sentiment and market capitalization in recent weeks. According to a new report from crypto analytics firm Santiment, public attention on DOGE is waning, driven by its 26% drop in value from its peak price a month ago. Despite this bearish trend, Santiment analysts believe that this drop in sentiment could be a good sign for The Future Growth of Dogecoin.
Dogecoin Sentiment Hits New Low
Dogecoin has struggled to regain previous highs following its brief increase in November 2024. Interestingly, the meme coin also saw a slight rally earlier in the year when Elon Musk temporarily changed the name of his social media profileKekius Maximo”, a new frog-themed meme coin.
After Musk’s sudden name change, Dogecoin saw a sharp price surge, but it was short-lived. The meme coin eventually erased 28% of its market capitalization as it experienced a dramatic fall in social media activity and general public interest.
According to Santiment crypto analyst Brainq, Dogecoin public sentiment is at its lowest point over the past year. the analyst rates Dogecoin public sentiment is only 1 out of 5, indicating a lack of enthusiasm and commitment from investors and traders. Dogecoin’s social sentiment results also contrast significantly with the more optimistic ratings of other popular cryptocurrencies such as XRP and Solana (SUN)which obtained a score of 4 out of 5.
Fluctuations in social sentiment It is not unusual for meme coins, which are mainly driven by market trends and social activity. In early 2024, DOGE’s popularity on social media grew significantly following the news of Musk’s Department of Government Efficiency (DOGE) proposal and the victory of Donald Trump in the United States presidential elections.
At the time, the rising popularity of the meme coin had coincided with a sharp rise in its price, pushing it well above the $0.4 level. However, with Social sentiment is now at a remarkably low point.it seems likely that DOGE could face further price declines and increased volatility. Contrary to this perspective, Santiment suggests that Dogecoin’s decline in social sentiment could serve as a springboard for a significant price rebound.
Why DOGE Sentiment Drop Could Signal Opportunity
While Dogecoin’s Declining Sentiment may seem like a bearish signal, Santiment maintains that it could present an opportunity for risk-tolerant investors. Brianq notes that low public sentiment often coincides with periods of undervaluation, potentially creating an opportunity for accumulate chips before the price rebounds.
The Santiment analyst predicts that if the broader crypto market returns to an uptrend, DOGE could see a significant reversal, moving its price away from upward bearish trends. Essentially, the analyst report suggests that Dogecoin’s declining 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
