Dogecoin (DOGE) stands out as a prominent memecoin in the cryptocurrency realm. In the past 24 hours, its price has undergone significant volatility fueled by rumors circulating on social media.
Unfounded Rumours
Unfounded rumors triggered tumultuous price fluctuations for DOGE after a false social media claim regarding the demise of its cherished mascot.
Following a pseudonymous user (X) sharing a deceptive screenshot on Twitter, falsely claiming the demise of Kabuso, DOGE’s token dog, prices surged by 9% to 8.3 cents. The user later confessed to the screenshot being fake, deleted the post, privatised their account, and eventually erased the entire profile.
The event underscored the vulnerability of crypto markets to misinformation, coinciding with another false report concerning Bitcoin spot ETFs impacting the entire market.
Despite this, the significant fluctuation in DOGE’s price enabled numerous addresses to turn profitable, leading them to sell their holdings.
What Rises Upward
DOGE surrendered the majority of its earlier gains, retracing to about $0.078 at the moment.
Despite the brief price increase, DOGE’s overall outlook appeared bearish, evident in the multiple lower lows and lower highs observed in its price movement over the past month. Additionally, the decline in DOGE’s RSI signaled a diminishing bullish momentum.
Social Changes
Given DOGE’s memecoin nature, its price trends are significantly influenced by social factors.
AMBCrypto’s examination of Santiment’s data revealed that DOGE’s social volume remained stable even amid market fluctuations.
However, it’s crucial to highlight that the weighted sentiment associated with DOGE markedly declined in recent days. This indicates that the overall count of negative comments surpassed positive ones on social media regarding DOGE.
Despite the negative sentiment online, the total number of addresses holding DOGE continued to increase.
This indicates that numerous addresses are still gathering DOGE, suggesting ongoing strong retail interest, which could potentially contribute to DOGE’s price recovery down the line.
