The bleak Dogecoin social sentiment raises questions about the price

Dogecoin (DOGE) has recently found itself at the center of a storm due to a US Securities and Exchange Commission (SEC) lawsuit against major exchanges Binance and Coinbase. As media outlets spread fear, uncertainty and doubt about the legal proceedings, the market capitalization of this meme coin has declined significantly.

However, despite the turmoil, on-chain data shows that long-term loyalists of the Dogecoin community remain steadfast in their support.

As the media mentions dwindle and the storm calms down, a compelling question arises: could this be the opportune moment for bullish investors to seize the decline and make another impressive price rally for DOGE?

Dogecoin (DOGE) holders show resilience amid market turmoil

According to detailed on-chain analysis, it appears that the recent selloff and price decline in DOGE was driven primarily by short-term traders rather than committed long-term holders. A comprehensive sentiment chart illustrates this phenomenon, demonstrating a significant increase in Mean Coin Age within the Dogecoin ecosystem during the same period when the massive selloff occurred.

DOGE Mean Coin Age. Source: Santiment

Checking data from June 1 to June 9 Average Coin Age for DOGE experienced a growth of 5%, from 54,317 to 57,219. This upward trend in Mean Coin Edge during a period of price retracement serves as a promising signal, indicating growing confidence among long-term DOGE holders.

Notably, approximately 70% of the total circulating Dogecoin supply is currently held by stable long-term investors who have held their positions for more than a year. With such a significant portion of DOGE in the hands of committed holders, it follows logically that if they continue to hold onto their coins, the price of DOGE is likely to rebound in the near future.

DOGE Social Volume Down: Potential Opportunity for Bullish Investors?

In just a span of four days from 5th June to 9th June, DOGE’s Social Volume saw a massive 72% drop, falling from 8,219 mentions to 2,308.

Sentiment’s social volume metric serves as a reliable indicator of market sentiment by tracking the frequency of mentions of a project across various channels, including Twitter and related crypto-media platforms.

DOGE Social Volume. Source: Santiment

When a substantial decrease in social volume is experienced as seen above, it shows that many stakeholders are currently ignoring the asset.

This situation presents an opportunity for strategic investors to capitalize on the market bottom. It is common for bullish investors to strategically enter the market when sentiment reaches a new low, with the aim of buying assets at their lowest possible price.

$ dog Today 🚀🚀🚀🚀🚀 as it is, a little promising and defying gravity pic.twitter.com/zHNj0BvHcU

— Thomas (@thomasnegeri) June 9, 2023

Optimistic investors can take this as an encouraging sign, seeing this drop in social volume as a potential turning point for DOGE price declines. If this bullish outlook materializes, the crypto community believes DOGE will regain its upward momentum And will once again climb the charts in the days to come.

Source: Coingecko

This time, coingeco The current price of DOGE is stated at $0.060480, down 11.3% in the last 24-hours. Similarly, the cryptocurrency has declined by 16.7% during the last seven days.

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