After a brief recovery, the cryptocurrency market is reconsolidating, including Dogecoin (DOGE), one of the most well-known dog meme tokens, but a bullish rally may still be in store as it has witnessed the highest social sentiment in the past four months.
Will DOGE pump 160% again?
Coincidentally, Dogecoin last had a similar social sentiment in October 2022, followed by DOGE, which rose 160% in the days that followed, as observed by renowned cryptocurrency expert Ali Martinez on Feb.
As he explains using a chart created on crypto tracking platform Santiment:
“Social sentiment around Dogecoin hasn’t been this positive since October 2022, when DOGE rose 160%.”
Indeed, the chart shows a total weighted sentiment near 7 index points for DOGE in late October 2022, followed by a sharp price increase to $0.147. By comparison, current social sentiment is close to October levels with 6,199 points.
Dogecoin social sentiment and price. Source: Ali Martinez/Santiment
According to a tweet by Santiment quoting Martinez, “This pattern of social volume and extremely positive sentiment towards Dogecoin perfectly illustrates how enthusiasm is driving prices to the top. Whatever your view of DOGE, the exaggeration of this particular asset has historically been a harbinger of market conditions.”
Dogecoin price analysis
Meanwhile, DOGE was changing hands at $0.09 at the time of writing; This marks a 2.71% drop on the day, but still a 5.99% increase over the previous seven days and a 4.11% increase on the monthly price chart.
Dogecoin 7 day price chart. Source: Finbold
The latest fix comes after a price hike when Tesla CEO Elon Musk jokingly mocked a photo of his dog as Twitter’s new CEO.
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