- DOGE’s price declined but a rebound might take it toward $0.14.
- The Weighted Sentiment tapped a yearly high, indicating widespread bullish sentiment.
Dogecoin [DOGE] and some other memecoins registered significant increases over the last few days. But out of this group, Dogecoin had one of the lowest hikes. However, AMBCrypto found that the other cryptocurrencies could not match Dogecoin’s social dominance.
Social dominance gauges the share of discussion around a project when compared with others in the top 100. Using Santiment’s on-chain data, we observed that the metric was at 2.32% for DOGE.
When we looked at Bonk [BONK], we noticed that it was way lower at $0.33%. Shiba Inu [SHIB], like BONK, couldn’t hit Dogecoin’s level of social attention either.
Source: Santiment
DOGE is set to be the leader
One reason the coin was trending was because of its recent performance. In the last seven days, the value of DOGE has increased by 44.15%. This amazing performance sparked discussion centering around holding DOGE in this bull market.
Furthermore, Dogecoin also recorded notable landmarks.
For instance, its market cap hit $17.5 billion. Also, the Open Interest around the coin surpassed $1 billion. The surge in Open Interest implies that traders were actively opening positions to capitalize on the price movements.
However, DOGE’s price has decreased in the last 24 hours, indicating that the Open Interest might not be able to fuel a further hike.
In a recent article, AMBCrypto explained how DOGE’s price increase was not because of increased demand. Instead, the coin followed the broader market jump led by Bitcoin [BTC].
However, the rise in social dominance implies that this position could change. if the dominance continues to spike, demand for DOGE might rise as market participants might turn their sentiment into action.
Should this be the case, Dogecoins’ price could retest $0.13 or rise higher.
A rebound could be close
As per the technical outlook, the DOGE 4-hour chart showed that some holders seem to be taking profits. This was because the Accumulation/Distribution (A/D) line had fallen.
A decline like this implies that there has been more distribution than buying in the last 24 hours.
If the A/D continues to drop, DOGE’s price might follow. If the selling pressure forces DOGE to fall to $0.10, the Supertrend indicator showed that it could be time to buy again. A rebound from $0.10 could send the coin close to $0.14.
AMBCrypto checked Dogecoin’s volume. On the 29th of February, the volume hit almost 6 billion, indicating rising demand for DOGE. However, the volume had decreased at press time.
A decrease in volume and price action suggests that the declining trend might become weak, and the price might bounce.
Realistic or not, here’s DOGE’s market cap in SHIB terms
In addition, the Weighted Sentiment grew to 5.58— the highest level it has hit this year. This increase indicates that most of the discussion around Dogecoin was bullish.
If it stays that way, it’s only a matter of time before the coin moves northward. However, it is not certain if DOGE would outperform other memecoins going forward but there is a possibility
Source: Santiment
