• Advertise
  • Submit a Press Release
NewsBTC
Bitcoin & cryptocurrency news
Crypto.com Logo
  • News
    • Bitcoin
    • Ethereum
    • Cardano
    • Dogecoin
    • Ripple
    • DeFi
    • NFT
    • Sponsored
    • Press Releases
  • Analysis
    • Bitcoin (BTC)
    • Ethereum (ETH)
    • Cardano (ADA)
    • Chainlink (LINK)
    • Litecoin (LTC)
    • Tezos (XTZ)
    • Zcash (ZEC)
    • EOS
    • YearnFinance (YFI)
  • Trading Course
  • Directory
    • Crypto Businesses
    • Bitcoin Brokers
    • Casinos
    • Sportsbooks
  • Events
  • Play GamesTry
  • Play Casino GamesTry
  • Free SpinsTry
  • Play FinanceTry
No Result
View All Result
Breaking News: Bitcoin Price Retests $27K Following Fed Rate Decision
  • News
    • Bitcoin
    • Ethereum
    • Cardano
    • Dogecoin
    • Ripple
    • DeFi
    • NFT
    • Sponsored
    • Press Releases
  • Analysis
    • Bitcoin (BTC)
    • Ethereum (ETH)
    • Cardano (ADA)
    • Chainlink (LINK)
    • Litecoin (LTC)
    • Tezos (XTZ)
    • Zcash (ZEC)
    • EOS
    • YearnFinance (YFI)
  • Trading Course
  • Directory
    • Crypto Businesses
    • Bitcoin Brokers
    • Casinos
    • Sportsbooks
  • Events
  • Play GamesTry
  • Play Casino GamesTry
  • Free SpinsTry
  • Play FinanceTry
No Result
View All Result
NewsBTC
No Result
View All Result
Breaking News: Bitcoin Price Retests $27K Following Fed Rate Decision
Dogecoin

Dogecoin Down 3%, Here’s The Metric That Signaled This Decline In Advance

Hououin Kyouma by Hououin Kyouma
1 month ago
in Dogecoin
Reading Time: 3 mins read
Advertisement

Dogecoin has declined around 3% in the past 24 hours following a pattern formation that has often signaled tops in the past.

Dogecoin Social Volume And Sentiment Shot Up Shortly Before The Decline

As per data from the on-chain analytics firm Santiment, euphoria has historically led to price tops in the cryptocurrency. A relevant indicator here is the “social volume,” which measures the total number of text documents that contain a given search term (which, in this case, is Dogecoin) at least once.

The text documents here include social media posts like tweets, telegram messages, Reddit posts, and other forum-related text pieces. A key feature of the social volume metric is that it doesn’t count these documents based on the number of times they mention the search term, but by if they do it even once.

Don't wait! Jump on this Crypto Deal and get a 150% Welcome Bonus plus 100 Free Spins on your deposit today!
570% up to 12 BTC + 300 Free Spins for new players & 1 BTC in bonuses every day, only at Wild.io. Play Now!

For example, if a tweet mentions Dogecoin once, while a Reddit post mentions the meme coin five times, the indicator will still count both of them as 1 document each (meaning that the total social volume here would be 2).

Now, here is a chart that shows the trend in the social volume for DOGE over the last few months:

Dogecoin Social Volume And Weighted Sentiment

BitStarz Player Lands $2,459,124 Record Win! Could you be next big winner?
Looks like the value of the metric has been high in recent days | Source: Ali on Twitter

As displayed in the above graph, the Dogecoin social volume (in green) has seen a sharp spike during the past couple of days, showing that discussion around the meme coin has been at pretty high levels recently.

The chart also shows data for another indicator, called the “weighted sentiment,” which first measures the general sentiment in the market around the cryptocurrency, and then weighs it against the social volume.

This metric quantifies the sentiment by going through the earlier mentioned social text documents and checking whether users are talking positively or negatively about the meme coin, using a machine learning model.

Related Reading: Bitcoin Bulls Charge Into BTC Death Cross, Why This Level Matters

Afterward, the indicator weighs this calculated sentiment against the current social volume of the asset. In simpler terms, this means that the metric will only show high values when both the social volume is high and the overall sentiment is very positive at the same time.

From the graph, it’s visible that this indicator has also shot up to very high values recently. In fact, the current level of the indicator is the highest it has been since October of last year. This means that not only are a lot of people talking about DOGE right now, but they are also in fact mentioning it in a positive light.

Interestingly, back in October, the price of the cryptocurrency was surging, but following both the social volume and weighted sentiment spiking to extremely high values, Dogecoin topped out and soon saw a sharp correction.

Related Reading: Polygon Whales Continue Accumulation, Add 55M MATIC

While hype can naturally generate a bullish wind for the coin, it’s also true that too much of it can lead to the price hitting the top and declining instead. “Regardless of your opinion on DOGE, hype on this asset in particular historically foreshadows market corrections,” explains Santiment.

Following the latest spikes in the two metrics, Dogecoin has already suffered a 3% drawdown after hitting a local high above the $0.09 level. At present, it’s currently unclear whether it’s truly the effect of euphoria that has appeared on the market with this latest drawdown, but if it is, then DOGE may be in for a further downtrend.

DOGE Price

At the time of writing, Dogecoin is trading around $0.0864, up 5% in the last week.

Dogecoin Price Chart

DOGE has declined during the past day | Source: DOGEUSD on TradingView
Featured image from Kanchanara on Unsplash.com, charts from TradingView.com, Santiment.net
Tags: dogeDogecoinDogecoin SentimentDogecoin Social VolumeDogecoin Weighted Sentimentdogeusd
Tweet123Share196ShareSend
Win up to $1,000,000 in One Spin at CryptoSlots
Hououin Kyouma

Hououin Kyouma

Loves to write, enthusiastic about cryptocurrency. Currently studying Physics at university.

Related Posts

Dogecoin

Dogecoin Whale Withdraws $5 Million In DOGE From Binance, Bullish Sign?

3 weeks ago
Dogecoin DOGE

Dogecoin Price Displays Bearish Chart Pattern, These Levels Are Key Now

3 weeks ago
Dogecoin

Dogecoin Moves Close To Support level, Will The Bulls Defend This Mark?

3 weeks ago
Dogecoin

Dogecoin At A Vital Price Level, Is There A Chance It May Rally?

1 month ago
Dogecoin DOGE

Dogecoin Whales Buy 1.06 Billion DOGE, Price Ready For Breakout?

1 month ago
Dogecoin

Dogecoin Down 6%, Slips Below Polygon On Market Cap List

1 month ago

Premium Partners

Play Finance

Top Casinos

BitStarz

BitStarz

Review · Visit
Punt Casino

Punt Casino

Review · Visit
Trust Dice

Trust Dice

Review · Visit
CryptoSlots

CryptoSlots

Review · Visit
mBit

mBit

Review · Visit

Sportsbooks

1xBit

1xBit

Review · Visit

IBC Group Incubates Chirpley, Pioneering a New Era of Digital Marketing with Nano-Micro Influencer Marketplace

March 25, 2023

In the journey from Web2 to Web3, Ethereum (ETH) and RenQ Finance (RENQ) play a significant role; here’s why!

March 25, 2023

Whatever Happened To Bitcoin Cash? – Learn Why Avorak AI and Other AI Crypto Are Surging

March 24, 2023

Avalanche Price Prediction: are AVAX and TOADS ready to 10X?

March 24, 2023

Litecoin (LTC) and Dogecoin (DOGE) Drowning in Controversy While TMS Network (TMSN) Steals the Show

March 24, 2023

About Us

NewsBTC is a cryptocurrency news service that covers bitcoin news today, technical analysis & forecasts for bitcoin price and other altcoins. Here at NewsBTC, we are dedicated to enlightening everyone about bitcoin and other cryptocurrencies.

We cover BTC news related to bitcoin exchanges, bitcoin mining and price forecasts for various cryptocurrencies.

Links

Crypto Prices from Nomics

Cryptocurrency news

  • Bitcoin
  • Ethereum
  • Ripple
  • Chainlink
  • Cardano
  • EOS
  • Tezos

Technical Analysis

  • Bitcoin (BTC)
  • Ethereum (ETH)
  • Ripple (XRP)
  • Chainlink (LINK)
  • Cardano (ADA)
  • Tezos (XTZ)

Company

  • Advertising
  • Comments Policy
  • Privacy Center
  • Sitemap
  • About Us
  • Contact

© 2022 NewsBTC. All Rights Reserved.

  • News
    • Bitcoin
    • Ethereum
    • Cardano
    • Dogecoin
    • Ripple
    • DeFi
    • NFT
    • Sponsored
    • Press Releases
  • Analysis
    • Bitcoin (BTC)
    • Ethereum (ETH)
    • Cardano (ADA)
    • Chainlink (LINK)
    • Litecoin (LTC)
    • Tezos (XTZ)
    • Zcash (ZEC)
    • EOS
    • YearnFinance (YFI)
  • Trading Course
  • Directory
    • Crypto Businesses
    • Bitcoin Brokers
    • Casinos
    • Sportsbooks
  • Events
  • Play Games
  • Play Casino Games
  • Free Spins
  • Play Finance

© 2022 NewsBTC. All Rights Reserved.

This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy Center or Cookie Policy.