Dogecoin
Dogecoin hits 2023 ‘low’ – Can Bitcoin spur DOGE’s ‘hated’ price rally?
DOGE has had an interesting few weeks, and Bitcoin can still play a role here.
- Historical data suggests the sentiment may precede a price hike to $0.27
- Significant drop in social volume could imply a potential buying opportunity
For the first time since September 2023, the Weighted Sentiment around Dogecoin [DOGE] hit -1.562 on the charts. This, according to AMBCrypto’s analysis of Santiment’s data.
Here, Weighted Sentiment can be defined as a result of the average comments about an asset on social media.
Hate could be fuel
On 24 May, Kabosu, the Shiba Inu dog that inspired the creation of Dogecoin, died. This prompted a hike in positive commentary about DOGE. However, the latest reading also revealed that for every 1 good comment about the coin, there were 1.56 more that were contrary to the same.
Typically, if negative sentiment dominates the market, demand for the memecoin might fall on the charts. However, for Dogecoin, history begs to differ.
Consider September 2023, for instance – Back when the metric was a similar position, DOGE’s price was $0.064.
However, the altcoin’s price soon jumped to $0.097 in less than three months. For the memecoin community, this upswing is called a “hated rally.” It happens whenever a pessimistic view about a cryptocurrency fuels a price hike on the charts.
Source: Santiment
Though history might not repeat itself, the pattern could appear again. If this is the case, DOGE’s price might move to a yearly high
of $0.27 before the beginning of the next quarter. At press time, the memecoin was valued at $0.16.Here, it’s also worth noting that data from IntoTheBlock revealed that 84% of all DOGE holders were making money at the aforementioned price level.
Should the value of the cryptocurrency rise as predicted, another set of 1.2 billion coins might fall into profit. For 100% of the total supply to be in gains, the memecoin’s price needs to hit $0.32.
Source: IntoTheBlock
Does Bitcoin have DOGE’s key?
This was the average price of 755,230 addresses accumulating DOGE. While this is not impossible, the price potential might depend on the movement of Bitcoin [BTC] too.
AMBCrypto mentioned this because of the correlation between BTC and DOGE. At the time of writing, the correlation between both coins was 0.86. On the contrary, for Ethereum [ETH] and most altcoins, the reading was much lower.
Hence, this implies that Dogecoin moves more strongly with Bitcoin than it does with other cryptocurrencies.
Source: IntoTheBlock
On-chain data recently also revealed how Bitcoin’s price is now at a good accumulation point. Going by this assumption, it could be safe to say that DOGE is in a similar condition. Ergo, a notable Bitcoin hike could drive DOGE’s price higher too.
Additionally, AMBCrypto assessed the memecoin’s social volume as well. At press time, this metric had fallen to 120 from 614.
Realistic or not, here’s DOGE’s market cap in BTC terms
From a price perspective, this decline could reinforce the notion that demand might wane. At the same time, it could offer a buying opportunity since most participants have lately been uncertain about the coin’s short-term performance.
Source: Santiment
