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

The crypto industry is now passing another time of turmoilas evidenced by last week’s price data. Dogecointhe biggest cryptocurrency of meme, led mainly the meme sector the price goes downwith many meme coins fails to attract income. At the same time, the shockluster price action was shown by a dip in enthusiasm from supporters, according to data analysis. According to data from Sentiment, Dogecoin sentiment based on positive comments across the internet has fallen to its lowest point in 2024. However, even though the situation is grim, this could be the best time for traders to collect DOGE before the price eventually bounces back.

Dogecoin Sentiment Weight Drops to 2024 Lows

Santiment’s data is based on Dogecoin exchange rate. Basically, weighted sentiment tracks social media mentions of cryptocurrencies and classifies them as positive or negative. Due to its status as a meme coin, Dogecoin’s price is heavily influenced by sentiment.

Related Reading

Dogecoin’s weighted sentiment is a cycle of ups and downs and always has its moments. Sometimes, on-chain data points to emotional shooting through the roof. At times like these, sentiment is low, and interest is waning among retail investors. As Santiment noted, Dogecoin’s weighted sentiment has been at a low for the past few days and is currently at a 2024 low.

With Dogecoin’s sentiment falling sharply, it is likely that Dogecoin’s price will continue to decline in the short term. However, keeping in mind that sentiment is bound to return, this provides an opportunity for smart investors to buy before another FOMO sets in.

“Patient traders who have been waiting for the crowd to stop on these big altcoins may have an opportunity to buy out of FOMO in 2024,” Santiment. noted.

Interestingly, this smart investment strategy is further reinforced by Dogecoin’s MVRV ratio. The MVRV ratio compares Dogecoin’s market capitalization with the realized value of all Dogecoins in circulation, indicating whether the asset is currently more or less valuable. Notably, Sentiment data It shows that the Dogecoin MVRV ratio has decreased gradually over the past 30 days and is currently below negative -12%. This suggests that the crypto is currently undervalued and has a value far below its potential.

What’s Next for DOGE Value?

Given Dogecoin’s history of extreme price volatility and momentum-driven rallies, a return to optimism could send the meme coin soaring again.

Related Reading

At the time of writing, DOGE is trading at $0.1248. Notably, the price action shows that DOGE is starting to reverse its seven day downtrend with an increase of 2.10% in the last 24 hours. Also, the relative strength indicator (RSI) shows that DOGE has recently bounced off the oversold border, suggesting that it may continue to move higher.

The featured image was created with Dall.E, a chart from Tradingview.com