The Crypto Industry Is Now Passing another turbulent periodas evidenced by price data last week. Dogecointhe largest meme cryptocurrency, particularly led the meme sector in price dropswith most meme coins failing to attract flows. At the same time, weak price action was reflected in a drop in supporter enthusiasm, according to data analysis. According to data from Santiment, Dogecoin sentiment based on positive mentions on the internet has fallen to its lowest point in 2024. However, although the mood is sour, this could be the best time for traders to acquire DOGE before the the price eventually recovers.
Dogecoin Weighted Sentiment Falls to 2024 Lows
Santiment data is based on weighted sentiment for Dogecoin. Basically, weighted sentiment tracks various mentions of cryptocurrencies on social media and classifies them as positive or negative. Due to its status as a meme coin, Dogecoin’s price is heavily impacted by weighted sentiment.
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Dogecoin’s thoughtful sentiment is a cycle of ups and downs and always has its moments. Sometimes network data points to skyrocketing sentiment. Other times like this, sentiment is negative, with interest waning among retail investors. As Santiment noted, Dogecoin’s weighted sentiment has been at the lower end in recent days and is currently at its lowest point in 2024.
With Dogecoin sentiment reaching new lows, the price of Dogecoin is likely to continue falling in the near term. However, keeping in mind that weighted sentiment is bound to reverse to the upside, this presents an opportunity for astute investors to buy before another FOMO kicks in.
“Patient traders who have been waiting for the crowd to give up on these large-cap altcoins may finally get their buying opportunity with FOMO in 2024 at the earliest,” Santiment observed.
Interestingly, this smart investment strategy is further solidified by Dogecoin’s MVRV index. The MVRV index 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, Sentiment data shows that the Dogecoin MVRV index has steadily declined over the past 30 days and is currently less than negative -12%. This suggests that the crypto is currently undervalued and priced 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 see the meme coin soar once again.
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At the time of writing, DOGE is trading at $0.1248. Notably, the price action indicates that DOGE is starting to reverse seven days of declines, with a 2.10% increase in the last 24 hours. Furthermore, the relative strength index (RSI) indicator shows that DOGE recently broke out of the oversold threshold, suggesting that it could continue on an upward trajectory.
Featured image created with Dall.E, chart from Tradingview.com