Dogecoin Weighted Sentiment Drops To 2024 Lows, What Does This Mean For Price?
19 Juni 2024 - 11:00PM
NEWSBTC
The crypto industry is now going through another turbulent period,
as evidenced by price data in the past week. Dogecoin, the largest
meme cryptocurrency, has particularly led the meme sector in price
declines, with most meme coins failing to attract inflows. At the
same time, the lacklustre price action has been reflected by a dip
in enthusiasm from supporters, according to data analytics. Per
data from Santiment, Dogecoin sentiment based on positive mentions
across the internet has fallen to its lowest point in 2024.
However, while the mood is sour, this could be the best time for
traders to scoop up DOGE before the price eventually rebounds.
Dogecoin Weighted Sentiment Drops To 2024 Lows Santiment’s data is
based on the weighted sentiment for Dogecoin. Basically, the
weighted sentiment tracks various social media mentions of
cryptocurrencies and classifies them as either positive or
negative. On account of its status as a meme coin, the price of
Dogecoin is heavily impacted by the weighted sentiment. Related
Reading: Shiba Inu To The Moon: Analyst Predicts A Run Above
$0.00015 If This Happens Dogecoin’s weighted sentiment is a cycle
of ups and downs and always has its moments. Sometimes, on-chain
data points to sentiment shooting through the roof. Other times
like this, the sentiment is on the downside, with interest waning
among retail investors. As Santiment noted, Dogecoin’s weighted
sentiment has been on the lower end in the past few days and is
currently at its lowest point in 2024. With Dogecoin
sentiment hitting new lows, it’s likely the Dogecoin price will
continue to slide lower in the short term. However, keeping in mind
that the weighted sentiment is bound to reverse to the upside, this
presents an opportunity for shrewd investors to buy in before
another FOMO kicks in. “Patient traders who have been waiting
for the crowd to give up on these large cap altcoins may finally
have their buy opportunity with FOMO at a 2024 low,” Santiment
noted. Interestingly, this smart investment strategy is further
solidified by Dogecoin’s MVRV ratio. The MVRV ratio compares
Dogecoin’s market capitalization to the realized value of all
Dogecoins in circulation, essentially showing whether the asset is
currently overvalued or undervalued. Notably, Santiment data shows
that the Dogecoin MVRV ratio has declined steadily over the past 30
days and is currently less than negative -12%. This suggests that
the crypto is currently undervalued and is at a price far below its
potential. What’s Next For DOGE Price? Given Dogecoin’s
history of extreme price volatility and momentum-driven rallies, a
shift back to positive sentiment could send the meme coin surging
once again. Related Reading: XRP Enters Triangle Formation:
Analyst Predicts Rise To $200 Amid 300% Surge In Volume At the time
of writing, DOGE is trading at $0.1248. Notably, price action
indicates that DOGE is starting to reverse seven days of declines
with a 2.10% increase in the past 24 hours. Also, the relative
strength index (RSI) indicator shows DOGE recently bouncing off the
oversold threshold, suggesting that it could continue on an upward
trajectory. Featured image created with Dall.E, chart from
Tradingview.com
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