Dogecoin, one of the most popular cryptocurrencies and the first meme coin, has experienced one Decline in social mood and market capitalization in recent weeks. According to a new report from crypto analytics firm Santiment, public attention on DOGE is waning, driven by a 26% loss in value since its price peak a month ago. Despite this bearish trend, analysts at Santiment believe that this dip in sentiment could be a good sign The future growth of Dogecoin.
Dogecoin sentiment hits new low
Dogecoin then struggled to regain previous highs short rise in November 2024. Interestingly, the meme coin also saw a slight uptick earlier in the year when Elon Musk temporarily changed the name of his X social media profile to “Cecius Maximus“, a new frog-themed meme coin.
After Musk’s sudden name change, Dogecoin saw a sharp price increase, but it was short-lived. The meme coin ended up losing 28% of its market cap while experiencing one dramatic decline on social media and in the general public interest.
According to Santiment crypto analyst Brainq, Dogecoin crowd sentiment is at its lowest point in the past year. The analyst Tariffs Dogecoin’s mass sentiment is just 1 out of 5, indicating a lack of enthusiasm and commitment from investors and traders. Dogecoin’s social sentiment results also stand in stark contrast to the more optimistic valuations of other popular cryptocurrencies such as XRP And Solana (SOL)which received 4 out of 5 points.
Fluctuations in social mood is not unusual for meme coins, as they are primarily driven by market trends and social activity. In early 2024, DOGE’s popularity on social media grew significantly after it was announced that Musk’s Department of Government Efficiency (DOGE) Proposal and Donald Trump’s victory in the US presidential election.
At that time, the rising popularity of the meme coin was accompanied by a sharp increase in price, which pushed it well above the $0.4 mark. However, with Social sentiment is currently at a remarkable low pointIt is likely that DOGE could face further price declines and increased volatility. Contrary to this view, Santiment suggests that the crash in Dogecoin’s social sentiment could serve as a springboard for one significant price recovery.
Why the plunge in DOGE sentiment could signal an opportunity
While The declining sentiment on Dogecoin While this may seem like a bearish signal, Santiment argues that it could represent an opportunity for risk-tolerant investors. Brianq points out that poor sentiment among the masses often coincides with periods of undervaluation, which may provide an opportunity for this to happen Collect tokens before the price rises again.
The Santiment analyst predicts that DOGE could see a significant trend reversal if the broader crypto market turns higher again and the price pushes higher away from the bearish trends. Essentially, the analyst’s report suggests that the decline in societal interest in Dogecoin 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