Dogecoin is one of the most popular cryptocurrencies and the first meme coin, experiencing a sharp decline in its social sentiment and market value in recent weeks. According to the latest report from cryptocurrency analysis firm Santiment, public interest in Dogecoin is waning due to its value dropping 26% since its price peak a month ago. Despite this bearish trend, Santiment analysts believe that the drop in sentiment could be a positive sign for Dogecoin's future growth.
Dogecoin sentiment hits a new low
Following a brief surge in November 2024, Dogecoin has struggled to regain its previous highs. Interestingly, earlier this year, when Elon Musk temporarily changed his X social media profile name to 'Kekius Maximus', a new meme coin themed around frogs, this meme coin also experienced a slight uptick.
After Musk's sudden name change, Dogecoin's price surged, but it was short-lived. The meme coin ultimately shrank in market value by 28%, and social media activity and public interest also sharply declined.
According to Santiment cryptocurrency analyst Brainq, Dogecoin's crowd sentiment is at its lowest point in the past year. The analyst scores Dogecoin's crowd sentiment at just 1 out of 5, indicating a lack of enthusiasm and engagement from investors and traders. Dogecoin's social sentiment results stand in stark contrast to more optimistic ratings for other popular cryptocurrencies like XRP and Solana (SOL), which scored 4 out of 5.
For meme coins primarily driven by market trends and social activity, fluctuations in social sentiment are not uncommon. At the beginning of 2024, as news broke of Musk's government efficiency proposal (DOGE) and Donald Trump's victory in the U.S. presidential election, DOGE saw a significant rise in popularity on social media.
At that time, the popularity of the meme coin was on the rise, and its price surged well above $0.4. However, with social sentiment currently at a clear low, Dogecoin may face further price declines and increased volatility. In contrast to this view, Santiment believes that the collapse of Dogecoin's social sentiment could serve as a springboard for a significant price rebound.
Why the DOGE sentiment crash may signal opportunity
Although the sentiment around Dogecoin appears to be a bearish signal, Santiment believes it could present an opportunity for risk-tolerant investors. Brianq points out that low crowd sentiment often corresponds with undervaluation periods, which may create opportunities to accumulate tokens before a price rebound.
Santiment analysts predict that if the broader cryptocurrency market trends upward again, Dogecoin may experience a significant reversal, lifting its price out of the bearish trend and into an upward trajectory. Essentially, the analyst's report suggests that the decline in Dogecoin's social interest could be a classic case of 'buy low, sell high' for investors willing to take calculated risks.