On December 19, 2024, crypto analyst Ali Martinez reported a significant decline in Dogecoin's market sentiment, which has turned negative as the price consolidates. This bearish trend raises concerns among investors regarding whether to buy or sell their DOGE tokens to avoid potential losses.
Martinez highlighted two key metrics in a price chart. The first metric, social volume, indicated by blue bars, represents the number of mentions of Dogecoin on social media. As a meme coin, social sentiment is crucial for DOGE's price trajectory; typically, increased social volume correlates with heightened interest and demand.
The second metric, weighted sentiment, shown by red bars, tracks the overall positive and negative sentiment surrounding DOGE on social media. A drop below the zero line signifies a pessimistic outlook from investors, which has occurred multiple times during periods of price consolidation.
Currently, the weighted sentiment for DOGE has dipped below 0.597, reflecting a bearish market sentiment. This, combined with the stagnation in price despite a previous rise to $0.4, leaves investors uncertain about their next moves.
Despite these concerns, analyst Cephii suggested that the ongoing consolidation could lead to a significant rally, predicting a potential rise toward $0.8 if DOGE breaks past key resistance levels. Notably, Cephii also pointed out that Dogecoin's social metrics remain robust, indicating continued community support amidst the negative market sentiment.