It was a Shiba Inu shootout in the sky: Dogecoin’s run over the past week will be one for the history books. However, for all fireworks, social media data indicates that the meme’s run may have come to an end.
The digital currency, which was originally launched in 2013 and has been the center of a number of absurd headlines and scams over the years, has marked another chapter in its often confusing history in recent years. days. On Friday, DOGE managed to eclipse Ethereum in total trading volume (doubling, in fact), the culmination of a remarkable run that saw it double in price in one day, capping at over 5,000% gains on the year.
However, at its core, DOGE is a meme, and memes are propagated and fundamentally dependent on social media. When the meme can’t spread, the price crashes.
At the time of publication, DOGE is down 35% on the day to $ 0.26 from highs of $ 0.40 – and social media sentiment data provided by The TIE and TBEN Markets Pro indicates that ‘there is more pain on the horizon.
Volume verses feeling
Google Trends published a Tweet on Friday highlighting the global search habits of Bitcoin and DOGE traders. They found that while most countries around the world remained focused on BTC, US traders only had eyes for Dogecoin.
– GoogleTrends (@GoogleTrends) April 16, 2021
This heat map is consistent with data provided by The TIE. The total volume of tweets referring to DOGE declines as the United States sleeps and improves during the American day, often peaking at noon EST, with particularly robust volume as DOGE rallies:
However, simple research and Twitter volume don’t always indicate a price increase. As the Google Trends infographic pointed out, the feeling of an increase in volume can be mixed: most of the major search terms center on traders trying to predict how much gasoline the DOGE rally has left behind. in the tank.
The uncertainty has also spread to Twitter. While sentiment for the currency was strongest during its run to $ 0.16 on April 14, sentiment-matching volume ‘waves’ declined to the upside – while total Twitter volume peaked with the price of DOGE at $ 0.40 it has been crashing for days now:
Ultimately, while volume and sentiment are what pushed DOGE to its highs, a rapid fall in prices now appears to be bringing Dogecoin back to earth.