June 23, 2024


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Dogecoin Hits 2023 'Low' – Can Bitcoin Catalyze 'Hated' DOGE Price Rally?

Dogecoin Hits 2023 'Low' – Can Bitcoin Catalyze 'Hated' DOGE Price Rally?

  • Historical data suggests that sentiment may precede a price rise to $0.27
  • A significant drop in social volume may indicate a potential buying opportunity

For the first time since September 2023, sentiment around Dogecoin has risen [DOGE] Hit -1.562 on the charts. This is, according to AMBCrypto's analysis of Santiment data.

Here, weighted sentiment can be defined as the result of the average comments about an asset on social media.

Hate can be fuel

On May 24, Kapuso, the Shiba Inu dog who inspired the creation of Dogecoin, died. This led to an increase in positive comments about DOGE. However, a recent reading also revealed that for every good comment about the coin, there were another 1.56 negative comments.

Usually, if the feelings are negative dominates In the market, the demand for memecoin may decrease on the charts. However, for Dogecoin, the history is different.

Consider September 2023, for example – when the gauge was in a similar position, the price of DOGE was $0.064.

However, the altcoin's price quickly jumped to $0.097 in less than three months. For LGBT Queens, this rise is called the “hate rally.” This happens when a pessimistic outlook around the cryptocurrency causes prices to rise on the charts.

The Dogecoin gauge shows that the price may continue to rise

Source: Santiment

Although history may not repeat itself, this pattern may appear again. If this is the case, DOGE price could move to a yearly high of $0.27 before the start of the next quarter. At the time of writing, the value of the memecoin was $0.16.

Here, it is also worth mentioning that data from IntoTheBlock open That 84% of all DOGE holders were making money at the price level mentioned above.

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If the value of the cryptocurrency rises as expected, another batch of 1.2 billion coins could enter the profit. For 100% of the total supply to gain, the price of the memecoin must reach $0.32.

It looks like Dogecoin is ready to move more supply into profitIt looks like Dogecoin is ready to move more supply into profit

Source: IntoTheBlock

Does Bitcoin have a DOGE key?

This was the average price of 755,230 accumulated DOGE addresses. While this is not impossible, the potential price may depend on the movement of Bitcoin [BTC] also.

AMBCrypto mentioned this because relationship Between BTC and DOGE. At the time of writing, the correlation between the two currencies was 0.86. On the contrary, for Ethereum [ETH] For most altcoins, the reading was much lower.

Hence, this means that Dogecoin moves more strongly with Bitcoin than with other cryptocurrencies.

Dogecoin shows a strong correlation with BitcoinDogecoin shows a strong correlation with Bitcoin

Source: IntoTheBlock

On-chain data recently also revealed how Bitcoin price has now reached a good accumulation point. Based on this assumption, it might be safe to say that DOGE is in a similar state. Therefore, a notable rise in Bitcoin may lead to a rise in the price of DOGE as well.

In addition, AMBCrypto has evaluated the memcoin Social size also. At press time, this measure had fallen to 120 from 614.

Realistic or not, this is the market cap of DOGE in terms of BTC

From a price perspective, this decline may reinforce the idea that demand may be waning. At the same time, it could provide a buying opportunity since most participants have recently been uncertain about the currency's short-term performance.

Searches for Dogecoin are down, indicating a buy signalSearches for Dogecoin are down, indicating a buy signal

Source: Santiment