Bitcoin it has struggled to break into the $23,000 resistance levels and other key price points since falling to hover around the $17,000 and $23,000 price ranges. As other altcoins are greatly affected by current market conditions orchestrated by interest rate hikes, analysts have chosen a popular crypto to perform well in a short time. According to the blockchain analytics platform Santiment, Dogecoin potentially has more room to grow. This is based on two important indicators, namely search trends and social dominance. Sentiment noted that the number of times it was searched ‘Dogecoin‘ in online search engines in 2021, when the asset was trading at an all-time high of $0.73, far exceeds its current search volume.
DOGE and related words have been in the top 5 of our social trends for the last 4-5 days, which is also usually an indicator of incoming price declines.
Similarly, its social dominance gauge shows the asset is well below the level when it hit an all-time high last year. As of May 2021, Doge’s social dominance was 40%. However, it is currently at 14%.
There is a bearish reversal for Dogecoin, according to analysts
According to analysts, the stock volume and its rising sentiment indicate a bearish reversal.
A classic image of a big spike in social volume marking a potential top, plus sentiment going higher and higher, meaning people are very positive in their DOGE-related statements.
Between October 25 and November 1, Dogecoin increased by 168.8%, going from $0.059 to $0.130. According to the crypto analysis firm, the considerable increase of this asset in this short time is a good sign for investors. Data from CoinMarketCap has also revealed that Dogecoin holders have increased by around 2% in the last three months. As of October 23, Dogecoin account holders numbered 4,456,459, up from 4,365,551 on July 24. The reason for the increase in Dogecoin holders has been attributed to the future expectation of a price increase. The accumulation of the asset by the whales and the increase in network activities is a strong indication that there could be a rebound. Tesla CEO, Elon Musk, who has been a huge fan of Dogecoin, recently took over Twitter. It is speculated that the meme coin could be recognized as a payment method on the social media platform. This news has coincided with the increase in Dogecoin holdings. Considering that the Dogecoin community and Musk have a good history together, this news is expected to be a catalyst for the asset stage to recover. Elon Musk has, on several occasions, hinted at taking “Dogecoin to the moon” and making it a payment option for the purchase of Tesla products.
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