The cryptocurrency industry is currently experiencing a crisis another turbulent periodas evidenced by last week’s price data. Dogecointhe largest meme cryptocurrency, especially led the meme sector prices are going downwith most meme coins did not attract inflows. At the same time, the feeble price action was reflected in a decline in enthusiasm among supporters, according to data analysts. According to Santiment data, sentiment for Dogecoin based on positive online mentions has dropped to its lowest level in 2024. However, while sentiment is uncertain, this may be the best time for traders to get DOGE before the price eventually rebounds.
Dogecoin-weighted sentiment sinks to 2024 lows
Santiment data is based on weighted sentiment for Dogecoin. Essentially, weighted sentiment tracks various mentions of cryptocurrencies on social media and classifies them as positive or negative. Due to its meme coin status, Dogecoin’s price is heavily influenced by weighted sentiment.
Dogecoin’s weighted sentiment is a cycle of ups and downs and always has its moments. Sometimes on-chain data indicates huge sentiment. In other cases, sentiment is negative and retail investor interest is waning. As Santiment noted, weighted sentiment for Dogecoin has remained at the lower end over the past few days and is currently at a 2024 low.
With Dogecoin sentiment reaching novel lows, it is likely that Dogecoin price will continue to decline in the tiny term. However, given that weighted sentiment is certain to reverse higher, this presents an opportunity for sharp investors to buy the stock before the next FOMO hits.
“Patient traders who have been waiting for the crowd to abandon these large-cap altcoins may finally have an opportunity to buy through FOMO at the 2024 low.” – Santiment recorded.
Interestingly, this sharp investment strategy is further strengthened by Dogecoin’s MVRV. 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. Especially, Santiment data shows that Dogecoin MVRV has been steadily degenerating over the past 30 days and is currently less than -12%. This suggests that the cryptocurrency is currently undervalued and trading well below its potential.
What’s next for DOGE’s price?
Given Dogecoin’s history of extreme price volatility and momentum-driven gains, a return to positive sentiment could see the meme coin’s prices rise again.
At the time of writing, DOGE is trading at $0.1248. Notably, the price action indicates that DOGE is starting to reverse its seven-day decline, rising 2.10% in the last 24 hours. Additionally, the Relative Strength Index (RSI) indicator shows that DOGE has recently rebounded from the oversold threshold, suggesting that it may continue its uptrend.
Featured image created with Dall.E, chart from Tradingview.com
