Dogecoin (DOGE) price has stagnated at the $0.06 range for the better part of September, despite most projects in the top 20 rankings scoring sizable gains. On-chain data analysis explores how a recent shift in social sentiment could spur whale investors into action in the coming weeks.
Dogecoin price performance in September has been underwhelming, reminiscent of the dwindling investor interest in broader memecoin markets. While projects in emerging sectors like Real World Assets and Telegram Bot tokens have stolen the show, social sentiment surrounding DOGE has grown increasingly bearish.
Could this be a signal for whale investors to step in and buy the dip?
Dogecoin Whale Investors Have Maintained a Neutral Stance in September
Dogecoin (DOGE) price has remained at $0.06 in September despite the bullish tailwinds in the crypto markets triggered by the recent Fed rate pause. On-chain data shows that the whale investors have kept their daily transactions within the 19 billion to 14 billion DOGE range since Sept
Whale Transaction summarizes the total value of confirmed trades exceeding $100,000 on a given trading day. This decline in large transaction volumes implies that Dogecoin whales have cooled their trading activity this month.
This appears to have impacted the liquidity and fluidity in DOGE spot markets, which has been pivotal in keeping prices stagnant in recent weeks.
However, with DOGE social sentiment trending negatively, the whales could spark a Dogecoin price breakout if they increase their trading activity.
Social Sentiment Is Now Trending Negatively
Dogecoin holders have started growing disgruntled by the dismal price movement. Evidently, the chart below illustrates how the DOGE-weighted sentiment has trended deep into negative territory since the start of the month. After weeks of underwhelming performance, it currently sits in the red zone at -0.56 as of September 21.
The Weighted Sentiment metric evaluates the overall mood within a particular blockchain ecosystem. Essentially, it weighs the total number of positive comments about the project against the negative mentions.
When Weighted Sentiment trends negatively amid a neutral price movement, strategic investors could interpret the growing panic as the perfect time to buy the dip.
With Dogecoin price now under bearish pressure, whale investors could consider it a vital signal to swing into action.
DOGE Price Prediction: The $0.08 is a Viable Target
The current bearish sentiment surrounding the memecoin markets could incentivize the whales to buy the dip. If the premise holds, then the $0.08 could be a viable target for the bulls.
The Exchange On-chain Market Depth chart, which shows the price distribution of current active DOGE orders, also confirms this positive outlook. As depicted below, the market demand for Dogecoin around the current prices has outpaced supply.
However, strategic crypto traders have placed orders to sell 153 million DOGE when the price rises 20% to hit $0.075. If they execute their sell orders, they could significantly slow down the DOGE price rally.
But if the whales intensify their trading activity as predicted, the bull could flip that resistance level and push the rally toward $0.08.
Conversely, Dogecoin could reverse toward the $0.050 if the bearish pressure remains dominant. But, as shown above, crypto traders have opened orders to buy 187.2 million DOGE if the price slips by 10% to hit $0.056. Considering the towering market demand, they will likely trigger a rebound.
However, if that DOGE support level caves, the bears could force a downswing below $0.050 for the first time in 2023.
Read More: How To Make Money in a Bear Market
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