- The price of Dogecoin witnessed a temporary surge following a rumor about the death of its mascot.
- DOGE’s price fell shortly afterwards as sentiment around the memecoin dropped.
Dogecoin [DOGE] is one of the most popular memecoins in the crypto sector. Over the past 24 hours, the price of Dogecoin witnessed a wild swing over rumors on social media.
Unfounded rumors
DOGE witnessed volatile price swings after a fake rumor on social media about the death of its beloved mascot.
After a pseudonymous
The user then admitted that the screenshot was fake, deleted the message, made his account private, and eventually deleted the entire account.
#ClownShowAlert Name and shame pic.twitter.com/R06YWw41KJ
— slaknieuws (@slaknieuws_) January 9, 2024
This incident highlighted the sensitivity of crypto markets to disinformation. The news came as the entire market was affected by another fake news related to Bitcoin spot ETFs.
However, the wide swings in DOGE’s price made many addresses profitable, allowing them to sell their assets.
What goes up
DOGE lost most of its gains later in the day and has returned to around $0.078 at the time of writing.
Despite the temporary rise in DOGE’s price, the overall outlook for DOGE appeared bearish. This was indicated by the multiple lower lows and lower highs that DOGE’s price movement showed over the past month.
Moreover, DOGE’s RSI also fell, showing that bullish momentum around DOGE had dropped.
Source: Santiment
Social dynamics
Since DOGE is a memecoin, a large part of its price movements are determined by social metrics.
According to AMBCrypto’s analysis of Santiment’s data, DOGE’s social volume remained consistent despite market volatility.
However, it is important to note that weighted sentiment around DOGE has dropped significantly in recent days. This meant that the total number of negative comments had exceeded the number of positive comments surrounding DOGE on social media.
In contrast to the negative sentiment surrounding DOGE on social media, the total number of addresses with DOGE continued to grow.
Read Dogecoins [DOGE] Price forecast 2024-25
This suggested that many addresses continued to collect DOGE, implying that there was still strong retail interest in DOGE.
If the trend continues, it could contribute to DOGE’s price recovery in the future.
Source: Santiment