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 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 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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