Bitcoin
Dogecoin Hits 2023 ‘Low’ – Can Bitcoin Fuel DOGE’s ‘Hated’ Price Rise?
- Historical data suggests sentiment may precede a price rise to $0.27
- Significant drop in social volume could imply a potential buying opportunity
For the first time since September 2023, thoughtful sentiment around Dogecoin [DOGE] reached -1,562 on the charts. This, according to AMBCrypto’s analysis of Santiment data.
Here, weighted sentiment can be defined as the result of the average number of comments about an asset on social media.
Hate can be fuel
On May 24th, Kabosu, the Shiba Inu dog that inspired the creation of Dogecoin, he died. This led to an increase in positive comments about DOGE. However, the latest reading also revealed that for every 1 good comment about the coin, there were 1.56 more that were against it.
Typically, if the negative feeling dominates in the market, demand for memecoin could drop off the charts. However, for Dogecoin, history disagrees.
Consider September 2023, for example – when the metric was a similar position, the price of DOGE was $0.064.
However, the altcoin’s price soon jumped to $0.097 in less than three months. For the memecoin community, this rise is called the “hated meeting”. This happens whenever a pessimistic view on a cryptocurrency fuels a price surge on the charts.
Source: Santíment
Although history may not repeat itself, the pattern may reappear. If this is the case, the price of DOGE could move to a annual high of $0.27 before the start of the next quarter. At press time, memecoin was valued at $0.16.
Here, it is also important to note that the IntoTheBlock data revealed that 84% of all DOGE holders were making money at the price level mentioned above.
If the value of the cryptocurrency increases as predicted, another set of 1.2 billion coins could generate profit. For 100% of the total supply to be realized in earnings, the memecoin price needs to reach $0.32.
Source: IntoTheBlock
Does Bitcoin have the key to DOGE?
This was the average price of 755,230 addresses accumulating DOGE. While this is not impossible, the price potential may depend on the movement of Bitcoin [BTC] also.
AMBCrypto mentioned this because of the correlation between BTC and DOGE. At the time of writing, the correlation between the two currencies is 0.86. On the contrary, for Ethereum [ETH] and on most altcoins, the reading was much lower.
Hence, this implies that Dogecoin moves more strongly with Bitcoin than other cryptocurrencies.
Source: IntoTheBlock
On-chain data recently too revealed as the price of Bitcoin is now at a good accumulation point. Going by this assumption, it would be safe to say that DOGE is in a similar condition. Therefore, a notable rise in Bitcoin could also drive up the price of DOGE.
Additionally, AMBCrypto rated memecoin social volume also. At press time, this metric had dropped from 614 to 120.
Realistic or not, here it is DOGE market value in terms of BTC
From a price point of view, this decline could reinforce the notion that demand could decrease. At the same time, it could offer a buying opportunity since most participants lately are unsure about the currency’s performance in the short term.
Source: Santíment