When social sentiment around Dogecoin (DOGE) hits high intensities, like what is currently being seen on the market, it’s often a sign that the asset is in for a correction. Data from Santiment Feed shows that DOGE hadn’t seen this level of positive sentiment since October 2022, when it pumped by 160%.
This type of social hype is not uncommon in the market and is often a sign that a correction could be on its way soon.
Dogecoin (DOGE) set records late last month when it soared above $0.097, but since then, the meme cryptocurrency has seen a considerable correction in price. Though there may be various explanations for this market shift, one potential factor behind the correction could be the recent surge in social sentiment surrounding Dogecoin.
Dogecoin Recent Price Analysis
Dogecoin price action on the weekly chart shows the meme token price has jumped by 5.22% in the last seven days. Despite this week’s gain, DOGE is still trading in a bearish channel and may be on the brink of further correction. Doge is trading at $0.08658, down by 2.8% in the last 24 hours.
Dogecoin slipped below the $0.09 level and the $0.085 level, which had acted as a support zone in the past few weeks. If DOGE falls below $0.082, then further losses could be expected, and a retest of the $0.076 level is likely. The Fib retracement levels on the 4-hour chart indicate that DOGE could be headed for a correction below $0.084.
The technical analysis on the daily,4-hour, and hourly timeframe shows a bearish crossover with the MACD line falling below zero. The oscillator is currently trending below the signal line, indicating a bearish divergence in momentum.
The Relative Strength Index line has declined and is now close to the support zone at 40. If it continues to fall, further losses are expected in DOGE’s price action. The Stochastic RSI is also indicating a bearish divergence, with the stochastic line trending below 20, indicating that DOGE is in oversold territory.
Dogecoin’s price has sought support at the Fib retracement level of 61.8%, which is the lowest support in Dogecoin’s price history. If the current trend continues, DOGE could find further support at this level before seeing a possible correction or reversal.
Dogecoin (DOGE) has been experiencing a recent surge in social sentiment, suggesting that the cryptocurrency may be in for a correction soon. Technical analysis shows that the meme token is currently trading in an overall bearish channel, and further losses are likely if the price falls below $0.082.
With sentiment indicators suggesting that DOGE could be due for a correction, Dogecoin might touch the 61.8% Fibonacci support level before making a possible reversal.
