- According to Blockchain analytics platform Santiment, Dogecoin potentially has more room for growth.
- This is based on two important indicators namely: search trends and social dominance.
Bitcoin has struggled to break into $23,000 resistance levels and other key price points since dropping down to hover within the $17,000 and $23,000 price ranges. With other altcoins being massively affected by the current market conditions orchestrated by the interest rate hikes, analysts have chosen one popular crypto to do well in a short time.
According to blockchain analytics platform Santiment, Dogecoin potentially has more room for growth. This is based on two important indicators namely: search trends and social dominance.
Sentiment noted that the number of times ‘Dogecoin’ was searched in online search engines in 2021 when the asset was trading at an all-time high of $0.73 far surpasses its current search volume.
DOGE and related words have been holding the top 5 of our social trends for the last 4-5 days, which is also very often an indicator of incoming price decline.
Similarly, its social dominance indicator shows that the asset is far below the level when it hit an all-time high last year. In May 2021, the social dominance for Doge was 40 percent. However, it is currently standing at 14 percent.
There is a bearish reversal for Dogecoin – analysts
According to the analysts, the social volume and its rising sentiment indicate a bearish reversal.
A classic picture of big social volume spike marking a potential top, plus sentiment is going higher and higher, meaning people are very positive in their DOGE-related statements.
Between October 25 to November 1, Dogecoin surged by 168.8 percent, rising from $0.059 to $0.130. According to the crypto analytic firm, the considerable surge of this asset and within this short time is a good sign for investors.
Data from CoinMarketCap has also disclosed that Dogecoin holders have increased by about 2 percent in the last three months. As of October 23, Dogecoin account holders were 4,456,459, up from 4,365,551 on July 24. The asset is actively being traded on Dash 2 Trade, Binance, Coinbase and other renowned trading platforms. The reason for the surge in Dogecoin holders has been attributed to the future expectation of a price increase. The accumulation of the asset by whales and the increase in network activities is a strong indication that there could be a rally.
Tesla CEO Elon Musk who has been a big fan of Dogecoin recently took over Twitter. It is speculated that the meme coin could be recognized as a payment method on the social media platform. This news has coincided with the increase in Dogecoin holdings. Considering that the Dogecoin community and Musk have a good history together, it is expected that this news could be a catalyst to cause the asset stage to rally. Elon Musk, on a number of occasions, hinted at taking “Dogecoin to the moon” and making it a payment option for the purchase of Tesla products.
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