Dogecoin (DOGE) Sentiment Hits Yearly Lows, But Could This Be a Buying Opportunity?

Crypto analytics firm Santiment is highlighting a potential buying opportunity for Dogecoin (CRYPTO: DOGE) investors willing to take calculated risks, as chatter around the meme coin has dropped to concerning levels.

Here's what else you need to know for Friday, March 10:

Dogecoin's crowd sentiment has hit its lowest point in over a year, with a rating of just 1 out of 5 from Santiment. In contrast, other major cryptocurrencies like XRP (CRYPTO: XRP) and Solana (CRYPTO: SOL) are receiving more optimistic crowd sentiment ratings of 4 out of 5.

A look at Dogecoin's social dominance chart reveals a concerning decline in sentiment. As we can see, the crowd is losing interest in the meme coin. This downturn in crowd sentiment also coincides with a 28% drop in Dogecoin's market capitalization since peaking about a month ago.

During this period, public interest and social media activity around the meme coin have waned significantly. In fact, Google Trends data shows that Google searches for "Dogecoin" have also declined by 74% since mid-November 2024.

Earlier this year, Dogecoin's brief surge in popularity was partly driven by Elon Musk temporarily changing his X name to "Kekius Maximus," which ties into 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, like Shiba Inu (CRYPTO: SHIB) and Pepe, have suffered as well, losing double digits in the last month. Analysts say the nature of meme coins makes them highly susceptible to the dynamics of social media, which can lead to very unpredictable price movements. On the other hand, the current slump in crowd sentiment might be the catalyst for a recovery.

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

"If the broader crypto market trends upwards again, Dogecoin could see some nice upside. Memecoins & dog coins like DOGE & SHIB are seeing another round of strong price decreases," Santiment noted in its report.

One pseudonymous trader, Wizz, remains optimistic about Dogecoin's future and predicts that it will outperform major cryptocurrencies over the next three to six months. Another analyst, KrissPax, highlighted similarities between Dogecoin's current price movement and patterns observed in late 2024, hinting at a potential breakout in 2025.

Meanwhile, other analysts are predicting DOGE to reach price levels between $3 and $5 by 2025. They point to indicators like the Gaussian Channel, which suggest the possibility of upward momentum.

It's important to note that the decline in crowd sentiment and price may be concerning for some, but 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.