Dogecoin hits 2023 'low' - Can Bitcoin spur DOGE's 'hated' price rally?
Can Bitcoin Rescue Dogecoin from 2023 Low?
Dogecoin has hit its lowest point in 2023, with a Weighted Sentiment score of -1.562, indicating more negative than positive comments on social media. Despite this, historical trends suggest such sentiment could precede a price increase, potentially reaching $0.27. The coin's movement seems closely tied to Bitcoin's performance, with a strong correlation of 0.86, hinting that a rise in Bitcoin could similarly boost Dogecoin's value.
What historical data suggests a potential price hike for Dogecoin to $0.27?
Historical data indicates that Dogecoin (DOGE) might experience a price hike to $0.27, despite current negative sentiment. This potential increase is suggested by a pattern observed in the past where negative sentiment, measured as Weighted Sentiment, has paradoxically led to price increases. For instance, in September 2023, when Dogecoin's sentiment was similarly low, its price escalated from $0.064 to $0.097 in less than three months, in what the community refers to as a "hated rally." This trend suggests that despite the predominance of negative commentary, Dogecoin has historically managed to increase in value, hinting at a possible rise to $0.27 in the near future.
How is Weighted Sentiment defined and measured in relation to Dogecoin?
Weighted Sentiment, in the context of Dogecoin or any other cryptocurrency, is a metric that represents the overall sentiment of the market towards the asset. It is measured by analyzing the comments and opinions about the asset on social media platforms and other online sources. The metric takes into account both positive and negative comments, but assigns more weight to the negative ones.
In the case of Dogecoin, the Weighted Sentiment is calculated by taking the average of all the comments about DOGE on social media, but giving more importance to negative comments. This is done to reflect the fact that people are more likely to express negative sentiments than positive ones, and also to account for the impact of negative news or events on the market sentiment.
A high Weighted Sentiment score indicates that the market is overwhelmingly positive about Dogecoin, while a low score suggests that negative sentiments are dominating the market. Historical data has shown that periods of low Weighted Sentiment for Dogecoin have often been followed by price hikes, as negative sentiment can fuel a "hated rally" where pessimistic views about the cryptocurrency lead to a surge in demand and price.