Dogecoin’s value fell over the weekend after a four-week bull run, sparking speculation about whether the rally will stop there. The pullback has many on social media wondering how sustainable the rally is, and whether the momentum that has supported its rise is starting to fade.
The price of the popular meme coin fell to $0.3431, after reaching a high of $0.4265, recording a decrease of about 19.55%.
This decline can be linked to a decline in general interest among market participants. Social media engagement, a major driver of Dogecoin’s popularity and value, is starting to show signs of weakness.
However, some analysts believe that Dogecoin still has a lot of room to grow, especially with the indicators surrounding its popularity.
Interest has not peaked yet.
Although Dogecoin is among the largest cryptocurrencies, its rise in value is often linked to social interest rather than demand for its utility or any development related to the parent company.
This reliance on public sentiment creates a cyclical pattern: periods of increased interest typically lead to higher prices, followed by corrections when interest declines.
Dogecoin's surge came as a result of the huge interest associated with the US presidential election, Donald Trump, Elon Musk, and the similarity of the name to Trump's Department of Government Efficiency (D.O.G.E.).
Social media has played a major role in amplifying this interest, with Dogecoin being mentioned on a number of platforms. However, there are signs that interest is starting to wane, as reflected in the current correction in Dogecoin’s price.
According to analyst Ali Martinez, Dogecoin’s popularity has not yet reached its peak. The analyst shared a chart showing the social interest index for DOGE.
