Dogecoin Weighted Sentiment Drops To 2024 Lows, What Does This Mean For Price?

The
crypto
industry
is
now
going
through

another
turbulent
period,
as
evidenced
by
price
data
in
the
past
week.

Dogecoin,
the
largest
meme
cryptocurrency,
has
particularly
led
the
meme
sector
in

price
declines,
with
most
meme
coins

failing
to
attract
inflows.
At
the
same
time,
the
lacklustre
price
action
has
been
reflected
by
a
dip
in
enthusiasm
from
supporters,
according
to
data
analytics.
Per
data
from
Santiment,
Dogecoin
sentiment
based
on
positive
mentions
across
the
internet
has
fallen
to
its
lowest
point
in
2024.
However,
while
the
mood
is
sour,
this
could
be
the
best
time
for
traders
to
scoop
up
DOGE
before
the

price
eventually
rebounds.

Dogecoin
Weighted
Sentiment
Drops
To
2024
Lows

Santiment’s
data
is
based
on
the

weighted
sentiment
for
Dogecoin.
Basically,
the
weighted
sentiment
tracks
various
social
media
mentions
of
cryptocurrencies
and
classifies
them
as
either
positive
or
negative.
On
account
of
its
status
as
a
meme
coin,
the
price
of
Dogecoin
is
heavily
impacted
by
the
weighted
sentiment.

Dogecoin’s
weighted
sentiment
is
a
cycle
of
ups
and
downs
and
always
has
its
moments.
Sometimes,
on-chain
data
points
to
sentiment
shooting
through
the
roof.
Other
times
like
this,
the
sentiment
is
on
the
downside,
with
interest
waning
among
retail
investors.
As
Santiment
noted,
Dogecoin’s
weighted
sentiment
has
been
on
the
lower
end
in
the
past
few
days
and
is
currently
at
its
lowest
point
in
2024.  

With
Dogecoin
sentiment
hitting
new
lows,
it’s
likely
the
Dogecoin
price
will
continue
to
slide
lower
in
the
short
term.
However,
keeping
in
mind
that
the
weighted
sentiment
is
bound
to
reverse
to
the
upside,
this
presents
an
opportunity
for
shrewd
investors
to
buy
in
before
another
FOMO
kicks
in. 

“Patient
traders
who
have
been
waiting
for
the
crowd
to
give
up
on
these
large
cap
altcoins
may
finally
have
their
buy
opportunity
with
FOMO
at
a
2024
low,”
Santiment

noted.

Interestingly,
this
smart
investment
strategy
is
further
solidified
by
Dogecoin’s
MVRV
ratio.
The
MVRV
ratio
compares
Dogecoin’s
market
capitalization
to
the
realized
value
of
all
Dogecoins
in
circulation,
essentially
showing
whether
the
asset
is
currently
overvalued
or
undervalued.
Notably,

Santiment
data

shows
that
the
Dogecoin
MVRV
ratio
has
declined
steadily
over
the
past
30
days
and
is
currently
less
than
negative
-12%.
This
suggests
that
the
crypto
is
currently
undervalued
and
is
at
a
price
far
below
its
potential. 

What’s
Next
For
DOGE
Price?

Given
Dogecoin’s
history
of
extreme
price
volatility
and
momentum-driven
rallies,
a
shift
back
to
positive
sentiment
could
send
the
meme
coin
surging
once
again. 

At
the
time
of
writing,
DOGE
is
trading
at
$0.1248.
Notably,
price
action
indicates
that
DOGE
is
starting
to
reverse
seven
days
of
declines
with
a
2.10%
increase
in
the
past
24
hours.
Also,
the
relative
strength
index
(RSI)
indicator
shows
DOGE
recently
bouncing
off
the
oversold
threshold,
suggesting
that
it
could
continue
on
an
upward
trajectory. 

Featured
image
created
with
Dall.E,
chart
from
Tradingview.com