Last month, memecoins performed worse compared to sectors like DeFi and data services. Prices of SHIB and DOGE continued to drop during this period.
For a while, memecoins were highly profitable in the cryptocurrency market. However, their performance has been disappointing over the past month. In the last month, Ethereum, the DeFi sector, and Data Services have significantly outperformed the memecoin sector.
Impact of Declining Memecoin Popularity on DOGE and SHIB
The waning popularity of memecoins, driven by the Solana memecoin frenzy and the rise of tokens like BODEN and TRUMP, has begun to erode the market share of major coins like DOGE and SHIB. As enthusiasm for traditional memecoins diminishes, both DOGE and SHIB face potential vulnerability to significant price fluctuations.
At the time of writing, DOGE was trading at $0.166, while SHIB was priced at $0.00002532. Since April began, these tokens have exhibited a high correlation, moving in tandem in terms of price but showing a downward trend with multiple lower lows and lower highs.
This bearish pattern suggests a challenging market environment for DOGE and SHIB, requiring substantial momentum to break out into positive territory again.
A critical factor influencing the future price trajectory of these memecoins is their presence on social media platforms.
Dogecoin-DOGE Chart. Source: Santiment
Analysis of Social and Sentiment Trends for DOGE and SHIB
According to Santiment’s data, the social volume for DOGE and SHIB has significantly decreased recently, indicating a decline in their popularity among investors and traders. This reduced interest can potentially impact price movements negatively.
However, despite the decline in social volume, the weighted sentiment for both tokens has increased. This suggests that while there are fewer discussions about DOGE and SHIB, the sentiment expressed in these discussions is predominantly positive.
If the positive sentiment manages to sway public opinion back in favor of DOGE and SHIB, it could pave the way for a reversal in their fortunes. Investors are closely monitoring these social and sentiment trends to gauge the future direction of these memecoins in the market.
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
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