Social sentiment surrounding meme coins has turned bearish. Market indicators suggested that DOGE was testing significant resistance.
After a week of double-digit price declines, Dogecoin (DOGE) has finally regained its bullish momentum. The price of the world’s largest meme coin has increased. But will this trend continue?
The Dogecoin whale is on the move!
Dogecoin has been a bit of a mess over the past week, witnessing major uptrends and downtrends. To be precise, DOGE’s price has fallen by over 13% in the past 7 days, according to CoinMarketCap.
However, in the past 24 hours, the coin’s price has increased by more than 3%, making the situation favorable for investors. At the time of writing, the world’s largest meme coin was trading at $0.1077, with a market capitalization of over $15 billion.
The recent price increase did not have a positive impact on the social indicators of meme coins.
AMBCrypto’s analysis of Santimento’s data reveals that DOGE’s social dominance has declined in recent days. This meant that investors were not talking about meme coins.
Additionally, the coin’s weighted sentiment has also declined, suggesting that the bearish sentiment surrounding the coin has increased recently.
Source: Santimento
While this price movement was occurring, the Dogecoin whale moved. Ali, a popular cryptocurrency analyst, recently posted a tweet highlighting an important development.
According to the tweet, DOGE whales have purchased over 1 billion DOGE in the past 24 hours, totaling approximately $108.7 million. This shows that the big players in the market have confidence in the meme coin and expect its price to increase.
Is DOGE going to increase in price soon?
With the potential for a price increase, AMBCrypto took a closer look at the state of the world’s largest meme coin to better understand whether the indicators signal a bull market.
An analysis of IntoTheBlock data reveals that inflows to DOGE have decreased over the past few days. Whenever the indicator declines, it means that the selling pressure on the asset is decreasing and can be inferred as a bullish signal.
However, the remaining indicators appeared bearish towards Dogecoin. For example, DOGE’s MVRV ratio fell sharply last week. Furthermore, the speed of meme coins has also slowed down. This means that transactions within the set time period used DOGE less frequently.
Source: Santimento
Read Dogecoin (DOGE) Price Prediction 2024-2025
Next, I checked the daily chart of Meme Coin. According to our analysis, DOGE was testing resistance near its 20-day simple moving average (SMA). This is an important test as a break above this level could trigger a bull market. However, if the test fails, DOGE could drop to $0.092.
Source: TradingView
Next: BNB at a crossroads despite bullish signs — is a rally to $600 still possible?
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