Dogecoin Sentiment Decline May Indicate Buying Opportunity

According to Cointelegraph, a decrease in social media activity and sentiment surrounding Dogecoin might present a buying opportunity for traders, as suggested by crypto analysis firm Santiment. The firm noted that crowd sentiment for Dogecoin has been near its lowest point over the past year, assigning it a 'bearish' rating of 1 out of 5. This is notably lower than the ratings for XRP and Solana, which both received a 4 out of 5. Santiment suggests that being optimistic about Dogecoin during this 'extremely quiet' period could be beneficial if the crypto markets start to rise again. The firm highlighted that Dogecoin, known as the top memecoin, has been relatively inactive except for a brief surge at the beginning of the year, which coincided with Elon Musk's temporary handle change to 'Kekius Maximus.' Since reaching its peak a month ago, Dogecoin has lost 28% of its market cap. Currently, Dogecoin is trading at $0.34, reflecting a 15.33% decrease over the past 30 days, as per CoinMarketCap data. Other memecoins within the top 100 cryptocurrencies have also experienced declines during the same period, with Shiba Inu down 15.92% and Pepe down 22.17%. Despite the current lack of enthusiasm on social media, some traders remain optimistic about Dogecoin's future performance. A pseudonymous crypto trader, Wizz, expressed to their followers that Dogecoin is expected to outperform most major cryptocurrencies in the next three to six months. Another trader, KrissPax, noted that Dogecoin's price action resembles its behavior from a year ago, suggesting a potential major upward move in 2025. Analysts anticipate Dogecoin could reach between $3 and $5 in 2025, based on the Gaussian Channel indicator, which helps traders identify price action channels. Meanwhile, Google searches for 'Dogecoin' have significantly decreased, dropping nearly 74% since the week following Donald Trump's victory in the U.S. presidential election on November 5. During that same week, a class-action lawsuit against Elon Musk and Tesla, accusing them of manipulating Dogecoin's price through media appearances and social media posts, was withdrawn by the plaintiffs on November 14, 2024. According to Google data, searches for 'Dogecoin' on January 4 scored 26, a substantial decline from the peak score of 100 on November 16. This article is intended for general informational purposes and does not constitute legal or investment advice. The views expressed are those of the author and do not necessarily reflect the views of Cointelegraph.