Dogecoin, one of the most popular cryptocurrencies and the first meme coin, has seen a collapse of social sentiment and market capitalization in recent weeks. According to a new report from crypto analytics firm Santiment, public attention to DOGE is waning, due to its value dropping 26% since its high price a month ago. Despite this downward 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 struggled to regain previous highs after its brief surge in November 2024. Interestingly, the meme coin also saw an uptick earlier this year when Elon Musk temporarily changed his social media profile nameKekius Maximus», a new coin on the theme of the frog.
After Musk’s sudden name change, Dogecoin saw a sharp price rise, but it was short-lived. The meme coin ultimately erased 28% of its market capitalization while experiencing a dramatic decline in social media activity and in the interest of the general public.
According to Brainq, crypto analyst at Santiment, public sentiment towards Dogecoin is at its lowest point over the past year. The analyst prices Public sentiment for Dogecoin is just 1 out of 5, signaling a lack of enthusiasm and engagement from investors and traders. Dogecoin’s social sentiment results also contrast significantly with the more optimistic ratings of other popular cryptocurrencies like XRP And Solana (SOL)which received a rating of 4 out of 5.
Fluctuations in social sentiment This is not unusual for meme coins, which are primarily driven by market trends and social activity. Earlier in 2024, DOGE’s popularity on social media increased significantly following the announcement of Musk’s Department of Government Effectiveness (DOGE) proposal and the victory of Donald Trump in the American presidential elections.
At the time, the meme coin’s growing popularity coincided with a sharp rise in its price, pushing it well above the $0.4 level. However, with social sentiment is now at a notable low pointit seems likely that DOGE could face further price declines and increased volatility. Contrary to this outlook, Santiment suggests that Dogecoin’s collapse in social sentiment could serve as a springboard to a significant price rebound.
Why the DOGE Sentiment Crash Could Signal an Opportunity
While Dogecoin’s Declining Sentiment may seem like a bearish signal, Santiment says this could present an opportunity for risk-tolerant investors. Brianq notes that low public sentiment often coincides with periods of undervaluation, potentially creating an opportunity to accumulate tokens before prices rebound.
The Santiment analyst predicts that if the broader crypto market trends higher again, DOGE could experience a significant reversal, moving its price away from downtrends and towards the upside. Essentially, the analyst’s report suggests that Dogecoin’s decline in 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