Here’s when traders can bet Dogecoin again
Meme-coins have their fair share of, both, proponents and opponents. They often end up clashing with each other on social media. Take for example, billionaire entrepreneur Mark Cuban, who just a day back, deduced that Dogecoin has a unique use case when compared to other cryptos. In a recent interview with CNBC, the Dallas Mavericks owner said,
“It’s a medium of exchange that can be used for the acquisition of goods and services… The community for Doge is the strongest when it comes to using it as a medium of exchange.”
Well, Tesla CEO, Elon Musk too chipped in and endorsed Cuban’s stance. On a usual day, one would expect the price of DOGE to react positively to such Twitter chatter. However, DOGE’s price did not exhibit any massive pump this time. Its valuation merely surged from $0.29 to $0.30 in the hours that followed Musk’s tweet.
Why are DOGE supporters silent
The usually pumped-up Doge community has been hibernating of late. The same was evidently supported by Santiment’s social sentiment data. Now as seen from the chart attached, DOGE’s social dominance and social volume were both on the downside lately.
During the initial days of June, the alt’s dominance on crypto related social media stood at 15%, while its social mentions used to cross 11k. However, they were now oscillating around 6% and the 1k region respectively.
DOGE’s price always pumped whenever it received due support from its online community. If the current monotonous trend continues, DOGE’s price may remain stagnated at its current level.
The bullish outlook?
Despite the aforementioned trend, IntoTheBlock’s data highlighted that the general market sentiment towards DOGE’s remained bullish. At this stage, it should be noted that the sell orders were fairly surpassing the buy orders. Over the past 12-hours alone, for instance, the buyer-seller trade difference depicted a negative value (113.25 DOGE). The persistence of selling pressure would end up deteriorating the state of the current bullish outlook.
Miner Netflows further painted another bearish picture. As such, negative numbers point to more coins flowing from miners and mining pools and are typically indicative of selling activity. This metric remained positive (1.79 billion DOGE) during DOGE’s peak in May but stood at -202.59 million DOGE, at the time of writing. Well, that’s not good news for DOGE’s price either.
Development Activity to the rescue
Looking at the state of the aforementioned metrics, no utopian recovery can be expected from DOGE at the moment. However, the meme-coin’s development activity that was nearly non-existent until last year has been recording massive spikes of late. As a matter of fact, the number of commits, stars and open issues on Github have also seen a drastic rise over the past few weeks. If the same consistently continues, one can expect some difference in the long-term prospects of the meme-coin.
Well, DOGE being promoted by entrepreneurs has undeniably helped its price soar quite a number of times in the recent past. But the very same magnates, along with community-centric social media shout-outs, seem to have lost their charm of late. Hence, DOGE’s developers need to buckle up at this stage. Only when that happens, can DOGE expect to organically recover and inch towards new benchmarks.