DOGE’s Low Social Chatter May Signal a Buying Opportunity: Analyst
Dogecoin’s current dip in crowd sentiment could present an opportunity for traders to capitalize before the crypto market regains momentum, according to analysis firm Santiment.
In a January 9 report, Santiment highlighted that social media discussions and sentiment around Dogecoin are at their lowest levels in over a year, suggesting potential for a contrarian play. The firm assigned Dogecoin a “bearish” crowd sentiment score of 1 out of 5, significantly trailing XRP and Solana, both rated at 4 out of 5.
Why the Quiet Period Could Pay Off
Santiment noted that Dogecoin’s “extremely quiet” market activity might offer “some nice upside” for those willing to take a bold stance, particularly if crypto markets trend upward again. The memecoin has seen a sharp decline since its peak a month ago, losing 28% of its market capitalization.
This recent quiet phase comes after a temporary surge in early January, linked to Elon Musk’s brief name change on social media to ‘Kekius Maximus.’ At the time of writing, Dogecoin is trading at $0.34, down 15.3% over the past 30 days, per CoinMarketCap data.
Broader Memecoin Trends
Other memecoins have also faced declines over the past month. Shiba Inu, ranked as the 16th largest cryptocurrency by market cap, has fallen by 15.9%, while Pepe is down 22.2% during the same period.
Despite the downturn, many traders remain optimistic about Dogecoin’s long-term performance. Several analysts predict a significant rally for the cryptocurrency in 2025.
Bullish Predictions for Dogecoin
Crypto trader Wizz, who boasts 768,700 followers on X, suggested in a January 6 post that Dogecoin will outperform most major cryptocurrencies within the next six months. Similarly, trader KrissPax told his 63,700 followers on January 9 that Dogecoin’s current price movements resemble patterns from one year ago.
“In November 2024, Doge traded higher, dropped, and is now consolidating. A major move up is next in 2025,” said KrissPax.
Other experts predict Dogecoin could reach $3 to $5 in 2025, based on the Gaussian Channel indicator, which identifies price action trends based on asset distribution principles.
Declining Interest on Google
Google Trends data shows a sharp drop in searches for “Dogecoin.” Searches have fallen 74% since mid-November 2024, when interest peaked following Donald Trump’s U.S. presidential election win.
In that same week, a class-action lawsuit against Elon Musk and Tesla, alleging Dogecoin price manipulation, was withdrawn by the plaintiffs, potentially contributing to declining interest.
As of January 4, searches for “Dogecoin” scored 26 on a seven-day scale, a sharp drop from the peak score of 100 reached on November 16, according to Google data.
Conclusion
While Dogecoin faces low sentiment and decreased market activity, analysts suggest this could be a prime opportunity for traders to position themselves for potential gains. As market trends evolve, Dogecoin’s performance in the coming months and years will likely depend on broader crypto sentiment and market dynamics.
