Dogecoin’s Dormant Hype Could Spark Big Returns: Analyst

Dogecoin, the original meme coin, has recently experienced a sharp decline in social media chatter and sentiment. That could be good news for DOGE, is a Dogecoin bull run around the corner?

According to crypto analytics firm Santiment, the drop in Dogecoin chatter might paradoxically indicate a potential buying opportunity for investors willing to take calculated risks.

Sentiment Hits Yearly Lows

Santiment’s analysis reveals that Dogecoin’s crowd sentiment has plunged to its lowest level in over a year. The firm rates DOGE’s sentiment at just 1 out of 5, starkly contrasting with more optimistic ratings for other cryptocurrencies like XRP and Solana, both scoring 4 out of 5.

Dogecoin’s social dominance chart showing declining sentiment. Source: Santiment

The downturn in sentiment coincides with a 28% drop in Dogecoin’s market capitalization since its peak a month ago. During this period, public interest and social media activity around the meme coin have significantly waned. According to Google Trends data, Google searches for “Dogecoin” have also declined by 74% since mid-November 2024.

What Triggered the Decline?

Dogecoin’s brief surge in popularity earlier this year was partially fueled by Elon Musk’s temporary name change on X to “Kekius Maximus,” referencing a frog-themed meme. This caused a short-lived spike in DOGE’s price before it fell back, erasing nearly a third of its value.

Other meme coins such as Shiba Inu and Pepe have equally suffered, losing double digits in the last month. Analysts indicate the nature of meme coins is very susceptible to the dynamics of social media, thus making the prices very unforeseeable. On the contrary, the current slump in sentiment might be a catalyst for a recovery.

The Contrarian Perspective

Santiment’s analysts argue that Dogecoin’s subdued sentiment could present an opportunity for contrarian investors. Historically, periods of low crowd sentiment have often aligned with undervaluation, creating favorable conditions for accumulation.

“Crypto’s top memecoin has been extremely quiet,” Santiment noted in its report. “If the broader crypto market trends upwards again, Dogecoin could see some nice upside.”

Analysts Eye Future Gains

Pseudonymous trader Wizz shared optimism about Dogecoin’s future, predicting it will outperform major cryptocurrencies within the next three to six months. Another analyst, KrissPax, pointed out similarities between Dogecoin’s current price movement and patterns observed in late 2024, hinting at a potential breakout in 2025.

Dogecoin (DOGE) is trading at $0.3406 at the time of publication. Source: Brave New Coin

Meanwhile, other experts forecast DOGE to reach price levels between $3 and $5 by 2025, citing indicators like the Gaussian Channel that suggest the possibility of upward momentum.

A Cautious Approach

While the decline in sentiment and price may appear concerning, it underscores the speculative nature of meme coins like Dogecoin. For investors, the current scenario might embody the classic “buy low, sell high” strategy.

However, factors like Dogecoin’s strong community support, its adoption of microtransactions, and the potential influence of social media trends could further shape its trajectory. Market volatility and broader crypto trends will determine DOGE’s fate in the coming months.

Whether Dogecoin’s sentiment crash signals a golden opportunity or a further decline remains to be seen, but it’s clear that the memecoin continues to captivate the attention of both traders and analysts. Doge to a dollar!