Santiment, the on-chain intelligence platform, has revealed that Dogecoin’s low social activity may benefit opportunistic traders. In its January 9 report, Santiment graded Dogecoin’s optimistic crowd sentiment score, giving it a 1 out of 5 score. In contrast, the platform awarded XRP and Solana a positive 4 out of 5 score. Dogecoin’s 28% drop in market capitalization didn’t also help matters, showing a lack of interest among traders after falling from its January highs.
Despite its bearish outlook, Santiment feels it is the best opportunity for courageous traders who intend to enter the market. The platform predicts that the market may see a resurgence when other digital assets witness the same fate, as evidenced by previous trends. Also, some traders feel that the asset has the potential for a future boost. For instance, pseudonymous trader Wizz noted that the token has what it takes to surpass other assets in three to six months.
Dogecoin’s outlook impacted by market hype and legal development
Aside from the social hype, Dogecoin’s search on Google has dropped by 74% since November 2024. The drop coincided with plaintiffs dropping a class-action lawsuit against Elon Musk and Tesla, accusing the billionaire and his firm of manipulating the asset’s price.
Although social media talk has dropped, periods like these have been historically used for accumulation. It also presents an opportunity for investors to buy, hoping the token can enter a bullish hype soon. If this happens, the courageous traders who believed during the bearish period will be adequately rewarded.
Santiment reveals BTC sentiment as ETH tries to sustain above $3k
According to Santiment, the sentiment of Bitcoin remains neutral, judging by the ratio of positive to negative comments analyzed. However, the audience returned to negative following the Fed-induced retracement on Dec 20. Ethereum, on the other hand, briefly regained the $4,000 price level.
The report noted that Ethereum is still trying to maintain its market price of over $3,000 per token. Santiment believes that if the mark is breached, then increased volatility could set in, creating opportunities for traders to purchase with a high-risk tolerance.