After a brief recovery, the cryptocurrency market is consolidating again, including one of its most recognized dog meme tokens, Dogecoin (DOGE), but a bullish rally could still be in store as it is witnessing the highest social sentiment in the past four months.
As it happens, the last time Dogecoin had similar social sentiment was in October 2022, which was followed by DOGE soaring 160% in subsequent days, according to the observations made by renowned cryptocurrency expert Ali Martinez on February 16.
As he explained using a chart created at the crypto tracking platform Santiment:
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“Social sentiment around Dogecoin hasn’t been this positive since October 2022, when DOGE pumped 160%.”
Indeed, the chart demonstrates a total weighted sentiment for DOGE at close to 7 index points in late October 2022, followed by a sharp increase in price which topped at $0.147. By comparison, the current social sentiment has neared the October levels at 6.199 points.
According to a tweet by Santiment that cites Martinez, “this pattern of social volume and highly positive sentiment toward Dogecoin perfectly illustrates how euphoria creates price tops. Regardless of your opinion on DOGE, hype on this asset in particular historically foreshadows market conditions.”
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Meanwhile, DOGE was at press time changing hands at the price of $0.09, which represents a decline of 2.71% on the day but still an advance of 5.99% over the previous seven days and a 4.11% gain on its monthly price chart, as per data retrieved on February 17.
The most recent correction follows a price increase that took place as Tesla (NASDAQ: TSLA) CEO Elon Musk jokingly teased a photo of his dog as the new CEO of Twitter (NYSE: TWTR), two months after the community supported his resignation in a poll he posted.
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