Los Angeles, California – Historical data indicates that the sentiment surrounding Dogecoin may be a precursor to a potential price increase to $0.27. Furthermore, a significant decrease in social volume could signify a potential buying opportunity for investors.
Recent analysis of Santiment’s data by AMBCrypto revealed that for the first time since September 2023, the Weighted Sentiment around Dogecoin hit -1.562 on the charts. Weighted Sentiment refers to the average comments about an asset on social media platforms.
Following the passing of Kabosu, the Shiba Inu dog that inspired the creation of Dogecoin, positive commentary about the meme-based cryptocurrency surged. However, data showed that for every positive comment, there were 1.56 more negative comments about Dogecoin. Despite negative sentiment dominating the market, historical data suggests that such sentiment does not always align with price movements.
In a similar scenario in September 2023, when Weighted Sentiment was at a comparable level, Dogecoin’s price surged from $0.064 to $0.097 in less than three months. This phenomenon, known as a “hated rally,” occurs when pessimism about a cryptocurrency actually drives its price upward on the charts.
It is speculated that if history repeats itself, Dogecoin’s price could reach a yearly high of $0.27 before the beginning of the next quarter. Currently, the coin is priced at $0.16. Additionally, data from IntoTheBlock indicates that 84% of all DOGE holders are profiting at the current price level.
The correlation between Bitcoin and Dogecoin is significant, with on-chain data revealing that the movement of Bitcoin could influence DOGE’s price. In comparison to other cryptocurrencies like Ethereum, Dogecoin shows a much stronger correlation with Bitcoin, suggesting that it follows Bitcoin’s price movements closely.
Moreover, the recent decline in Dogecoin’s social volume could indicate a buying signal to investors, as it might present a buying opportunity amidst uncertainty about the coin’s short-term performance. As such, investors may find the current market conditions favorable for accumulating Dogecoin.