Is Dogecoin (DOGE) losing its charm? Despite the impressive price rally in May, recent trends suggest a decline in investor engagement and interest. As the cryptocurrency market continues to evolve, concerns are growing about the broader implications of Dogecoin’s waning appeal.
Dogecoin’s engagement metrics have failed, leaving some experts wondering if the allure of cryptocurrency is fading. Market indicators show a decrease in trading volume, with fewer transactions compared to previous months.
Will this once-beloved digital currency be able to regain its momentum or is its star starting to fade?
Dogecoin new addresses stuck
The growth of new addresses joining the Dogecoin community has hit a roadblock since May, according to a recent report. DOGE Price Report. However, on-chain data analysis reveals that this stagnation in new headlines has not negatively affected the weighted sentiment associated with the cryptocurrency.
Source: Feeling
As of the last update, DOGE’s sentiment-weighted stands at -0.645. This metric provides insight into the average sentiment associated with a particular cryptocurrency, taking into account the unique social volume surrounding it.
Interestingly, despite the somewhat negative value, sentiment-weighted has shown improvement from its low point of -1.99 on June 9. This change suggests that the prevailing defeatist perception during that period has gradually shifted towards a more optimistic outlook.
DOGE’s market capitalization is slightly above the $10 billion level. Chart: TradingView.com
Social Volume and Headline Count: A Diverging Trend
However, while weighted sentiment demonstrates a positive trajectory, the coin’s social volume tells a different story. Rather than align with the stagnant number of holders, Dogecoin’s social volume has remained remarkably low since June 9, according to Santiment data.
Social volume measures the number of mentions and discussions specifically related to a cryptocurrency on various platforms. In the case of Dogecoin, this metric indicates a significant decline in overall online activity and conversation around the coin.
So far, there have been no significant changes in the aforementioned trends. This suggests that the hype surrounding DOGE has subsided considerably. From a market perspective, this could potentially indicate that the coin is undervalued and has not peaked yet.
The road ahead for Dogecoin looks challenging as the cryptocurrency faces new stagnant directions and a decline in social volume. However, it would be premature to dismiss the resistance of this meme-based digital asset.
Source: Coingecko
According to the latest data from Coingecko, the DOGE price stands at $0.068, reflecting a drop of 4.7% in the last 24 hours. However, despite this recent drop, Dogecoin experienced a seven-day rally of 4.6%, showing signs of resilience against short-term fluctuations.
(The content on this site should not be construed as investment advice. Investing involves risk. When you invest, your capital is subject to risk.)
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