It was a Shiba Inu that shot across the sky: Dogecoin’s run last week will be one for the history books. For all fireworks, however, the data on social media suggests that the meme’s run may have come to an end.
Originally launched in 2013 and at the center of a number of absurd headlines and scams over the years, the digital currency has opened another chapter in its often enigmatic history in recent days. On Friday, DOGE managed to overshadow (and even double) the total exchange volume of Ethereum. This was the cornerstone of a remarkable increase, with the price doubling in one day and annual growth exceeding 5000%.
However, at its core, DOGE is a meme, and memes are distributed by and basically rely on social media. If the meme can’t spread, the price will crash.
At the time of writing, DOGE is down 35% on the day to $ 0.26 and has pulled back from highs of $ 0.40. Social media sentiment data provided by The TIE and Cointelegraph Markets Pro suggests that more pain is on the horizon.
Band versus mood
On Friday, Google Trends posted a tweet highlighting the search habits of Bitcoin and DOGE traders around the world. They found that most of the world continued to focus on BTC, but American traders only had eyes for Dogecoin.
#doge Qs pic.twitter.com/ZSfNcOxegZ
– GoogleTrends (@GoogleTrends) April 16, 2021
This heat map is consistent with the data provided by The TIE. All of the tweet volume related to DOGE ebbs away as the US sleeps and recovers during the American daytime hours.
However, simple search and Twitter volume don’t always suggest a price rally. As the Google Trends infographic pointed out, sentiment about a volume spike can be mixed: many of the top search terms focused on traders trying to estimate how much gas the DOGE rally has left in the tank.
The uncertainty has also spread on Twitter. While sentiment for the currency was strongest during its run to $ 0.16 on April 14, the “waves” of sentiment adjustment volume have subsided on the run-up – while the overall Twitter volume is at the DOGE price of $ 0.40 Peaked, it has slumped for days:
While volume and sentiment drove DOGE higher, a rapid decline in price seems to be pulling Dogecoin back down to earth.