Here’s why the Dogecoin price could soon see another bull rally
Dogecoin (DOGE) like the rest of the crypto market has slowed down in the last day. This comes after a massive rally that saw the likes of Bitcoin and Ethereum break through four-month highs before correcting lower. But for Dogecoin, it seems the party may not be over.
Dogecoin’s social sentiment rises to October 2022 levels
Dogecoin’s social sentiment has actually been on a bumpy ride for the past couple of months. The last time the digital asset really saw a good increase was back in October 2022. If you’re wondering why this month is important, it’s because this is the month billionaire Elon Musk completed his takeover of social media platform Twitter.
As expected, the price of the meme coin rose when the social sentiment saw this spike. This led to gains of over 100% for the digital assets even as other cryptocurrencies in the space struggled to hold on to meager gains.
This time, Dogecoin’s social feeling has increased to this level again. Why this is important is that when social sentiment is so high, it means that investors are looking positively at the cryptocurrency. Thus, any price increase follows these waves.
DOGE weighted sentiment spikes to Oct. 2022 levels | Source: Santiment
A similar increase has been recorded in the social volume of the digital asset, meaning more investors are talking about the coin. The last time this trend was seen with both social volume rising and weighted sentiment rising was when DOGE’s price rose above $0.14 last year.
DOGE can gather social emotion alone
As is publicly known, the price of Dogecoin is one that is largely driven by hype, especially when the general sentiment around it is very positive. This is why the increase in positive sentiment paints a bullish picture for the meme coin.
If it follows the same trend seen back in October 2022, the price of DOGE could clear the $0.1 level in short order. There is also the possibility of further upside as long as the positive sentiment is high.
Couple this with the fact that the bull market is expected to be back in full swing and the Dogecoin price could be in for another huge rally. If the bull market coincides with this increase in positive sentiment, a 50% increase is not out of the question.
At the time of writing, DOGE is changing hands at a price of $0.086. It is down 2.93% in the last 24 hours, but up 5.45% in the last seven days.
DOGE continues to trend above $0.08 | Source: DOGEUSD on TradingView.com
