Dogecoin (DOGE) traders are seeing negative returns amid the latest market crisis, but Santiment analysts think this could be an opportune time to buy.
Amid macroeconomic headwinds, crypto asset prices have struggled in recent weeks, and even traders of the popular dog-themed cryptocurrency lite Dogecoin (DOGE) were unable to escape the rut, as recently highlighted by the crypto analytics platform. Feeling.
Dogecoin (DOGE) Traders See Red
Dogecoin (DOGE) average trader returns are back in the red. It is according to Feeling data common Wednesday, January 8.
According to the data, average returns for DOGE traders fell sharply from a high of around 72% in November 2024 to a negative 8.89% on Wednesday. The company deduced this using the intraday market value to realized value (MVRV) ratio over the last 30 days.
MVRV measures the difference between an asset’s price and the average price at which coins were last moved, providing insight into the profitability of holders.
Meanwhile, DOGE traders are not the only ones experiencing this drop in average returns. The data also shows that the average yield for Bitcoin, EthereumAnd Cardano traders are also in the red at -3.73%, -7.71% and -6.69%, respectively.
The data follows a falling market this week triggered by US economic data suggesting the Federal Reserve is unlikely to be in a hurry to continue its interest rate reduction regime. DOGE, in particular, saw a decline of almost 19%, from a high of $0.39831 on Tuesday to a low of $0.32444 on Wednesday.
Nonetheless, Santiment Feed suggested that the recent drop in yields could present an opportunity for traders.
No time to panic?
Santiment analysts believe that the recent drop in yields for DOGE traders may not be the time to panic but rather to look for opportunities.
The company argued that it was “less risky” to buy when traders’ average returns are in the red. He pointed out that times like these were when most professional traders made their money, citing the famous Nathan Rothschild quote: “The time to buy is when there is blood in the streets.”
Santiment Feed suggests that this could be a good play for traders as it anticipates a short to medium term recovery in crypto assets. Still, the company cautioned that, as with most things, there are no guarantees.
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