Simply putAfter testing the low point in November 2022, Dogcoin has rebounded by 17%.The social sentiment of DOGE is currently pessimistic
Simply put
- After testing the low point in November 2022, Dogcoin has rebounded by 17%.
- The social sentiment of DOGE is currently pessimistic.
- DOGE will soon flip $0.10
DOGE is steadily recovering after falling to its low point in November 2022. Will negative social emotions persuade cryptocurrency investors to buy on dips?
Careful examination of the data on the chain indicates that memes may have bottomed out.
DOGE social sentiment hit local lows
On March 10th, Dogcoin fell to $0.065, a bearish trend that brought it close to the level recorded during the cryptocurrency crash in November 2022. However, by March 22nd, it had recovered by 17%, reaching $0.077. In recent weeks, the social sentiment of online participants in Dogcoin seems to have declined. According to blockchain analysis company Santiment, in the past 30 days, there has been a significant decrease in the mention of dog coins in popular encrypted media channels,
The following figure depicts how the social dominance of dog coins decreased from 6.8% on February 19th to 2.6% on March 22nd.
Social dominance refers to the percentage of social media discussions mentioned by Dogcoin, involving over 50 selected top-level encryption project groups.
Usually, the decline in social dominance indicates that most internet participants and holders are currently pessimistic, which may stimulate cryptocurrency investors to rush into bargain hunting.
Another important bullish signal for DOGE is the positive deviation between daily active addresses and recent price trends.
The following figure shows that from February 22 to March 21, the price of DOGE decreased by nearly 10%, but the number of daily active addresses increased from 49997 to 56300, setting a series of higher highs.
Usually, if blockchain networks start to attract attention and the prices of underlying tokens are on a downward trend, it indicates that a recovery is imminent. Therefore, a positive deviation may drive DOGE to gain more revenue in the coming weeks.
Is the next dog coin priced at $0.10?
According to IntoTheBlock's exchange market depth chart, DOGE may soon break through $0.10. The market depth chart depicts key buying walls and important selling areas based on the current limit orders on the exchange.
As shown in the figure below, Dogcoin may face minimal resistance before reaching $0.088, and sellers hope to sell 24 billion DOGs here. If this resistance is not established, DOGE may approach $0.10, and there are still 1.83 billion DOGE sales orders open at this time.
In order for bears to take the initiative, the price of DOGE must fall below its current support level near the $0.070 area. At this point, the buyer has placed over 7 billion orders for DOGE. If this support is not established, DOGE may retest for $0.060.
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