Dogecoin, a cryptocurrency known for its association with Elon Musk and its popularity on social media, is now experiencing a sharp decline in market sentiment and trading activity. However, crypto analytics firm Santiment calls this situation an opportunity for traders who are willing to take risks and think outside the box.
In a report released on January 9, Santiment revealed that public sentiment towards Dogecoin is at its lowest level in the past year. Dogecoin received a bearish sentiment score of 1 out of 5, significantly lower than the 4 and 5 scores given to XRP and Solana.
"Dogecoin has been very quiet lately, except for a brief spike at the beginning of the year," Santiment said, as reported by cointelegraph.com.
Santiment said that the spike coincided with Elon Musk's Twitter account name change to Kekius Maximus. However, since reaching its peak a month ago, Dogecoin's market capitalization has dropped by 28 percent.
Although market sentiment looks negative, Santiment believes this could be an interesting opportunity for bold investors. If the overall crypto market starts to show recovery, there is potential for Dogecoin to bounce back.
Also Read: Dogecoin Hits Weekly Low, Will It Rise Again?
At the time of writing, Dogecoin is at $0.34, down 15.3 percent in the last 30 days according to CoinMarketCap data. Other meme coins have also seen significant declines. For example, Shiba Inu (ranked 16th by market cap) is down 15.9 percent, while Pepe has seen a sharper decline of 22.2 percent.
Dogecoin's declining popularity is also evident in Google search data. Searches for "Dogecoin" plunged 74 percent last November, with the search interest score dropping from 100 to 26, according to data from Google Trends.
Despite the negative sentiment, some crypto traders remain optimistic about Dogecoin's future. A trader under the pseudonym Wizz, who has more than 768,700 followers on Twitter, said in a Jan. 6 post that Dogecoin will be one of the top-platform cryptocurrencies in the next three to six months.
Meanwhile, another trader, KrissPax, observed that Dogecoin's current price movement is similar to the pattern seen in late 2024. He predicted a major spike in 2025. In fact, some analysts using the Gaussian Channel indicator predict that Dogecoin could reach between $3 and $5 that year.
The decline in interest in Dogecoin also coincided with Elon Musk's reduced involvement on social media regarding Dogecoin. A lawsuit accusing Musk of manipulating the price of Dogecoin via social media was dropped in November. Since then, online interest in Dogecoin has continued to decline.#ShareYourTrade #CryptoMarketDip #CryptoMarketDip