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Dogecoin Hits Sentiment Lows: Could a $2 Breakout Be Next?

Dogecoin Hits Sentiment Lows: Could a $2 Breakout Be Next?

CryptotaleCryptotale2025/03/11 06:17
By:Arslan Tabish
Dogecoin Hits Sentiment Lows: Could a $2 Breakout Be Next? image 0
  • Dogecoin sentiment drops to its lowest in a year, sparking uncertainty among investors.
  • Technical indicators flash bullish signs, hinting at a potential rally toward $2.
  • Analysts see a contrarian opportunity, as past dips often led to major price reversals.

The sentiment index for Dogecoin is at its lowest point in over a year, which is a sign of increased bearishness among investors. Data provided by Santiment and shared by the analyst, Ali Martinez on March 11 shows that the sentiment score has begun to decline. After reaching a high of 3.861 in Q4 of 2024, it has moved below zero to -0.935. Social volume has also declined, down from 3206 to only 212, which means that people have calmed down regarding the DOGE market.

Potential Price Reversal

Despite this decline, the analyst believes this could be a contrarian opportunity for investors. Historically, similar drops in sentiment have often preceded major price reversals, suggesting that the current pessimism could be an early sign of an upcoming bullish trend.  

Technical indicators are now hinting at a potential rebound for Dogecoin. The TD Sequential indicator has flashed a buy signal on the daily chart. The probability of Dogecoin bouncing back lies at the $0.16 support level with analysts seeing upside potential. Ali believes that it is feasible to attain the $2 level in the near term if the bulls dominate the price action.

Dogecoin Hits Sentiment Lows: Could a $2 Breakout Be Next? image 1 Source: X

Whales Accumulate DOGE

Adding to this optimism, large investors, often referred to as whales, have been accumulating massive amounts of Dogecoin. On March 10, wallet addresses holding between 100 million and 1 billion DOGE added 1.4 billion DOGE to their portfolios and on March 9, whales scooped up around 1.7 billion Dogecoin. Such heavy buying often reflects strong confidence from major investors. Analysts note that when whales accumulate during a dip, it frequently signals an upcoming price rebound.

Related: Dogecoin’s Monthly Doji Hints at a Major 2025 Bullish Run

Analyst Tardigrade noted a bullish divergence on Dogecoin’s chart. This suggests that the ongoing downtrend may be nearing its end. He revealed that Dogecoin is in the process of a long-term bottoming phase and is ready to spike higher. 

Dogecoin Hits Sentiment Lows: Could a $2 Breakout Be Next? image 2 Source: X

Currently, investors and market analysts are paying much attention to the support level of $0.16 in relation to the price of Dogecoin. If it holds and gains upward momentum, a strong rally could follow. With growing whale activity, technical buy signals, and historically low sentiment levels, Dogecoin could be on the verge of a major move.

The post Dogecoin Hits Sentiment Lows: Could a $2 Breakout Be Next? appeared first on Cryptotale.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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