Bitcoin’s (BTC) weakness has carried over to other crypto majors, from Solana’s SOL to memecoin dogecoin (DOGE), with data suggesting current levels could prove ripe for risk-on traders.
“Dogecoin, the leading cryptocurrency coin, has been extremely quiet outside of a temporary bull run early in the year,” analytics firm Santiment wrote in a report Thursday, citing metrics social and feelings based on online discussions.
“Since its peak exactly one month ago, Dogecoin has lost -28% of its market capitalization. Crowd sentiment is near its lowest point over the past year. (This) means that there is actually a nice upside to being a bold contrarian towards DOGE (in particular) if crypto markets start to trend up again,” the company added, sentiment of the crowd on DOGE currently being at low levels of 1 in 5.
The sentiment check aligns with a CoinDesk analysis from earlier this week.
Large investors, or “whales,” are showing increased interest in DOGE, with transactions above $100,000 increasing, hinting at possible near-term price increases. DOGE futures set a new open interest record late Tuesday, although they have since eased alongside a decline in the broader market.
As such, January was the best performing month historically for Dogecoin, with an average return of 85%. Technical indicators such as the 50-day SMA suggest a bullish trend for DOGE with a short-term target at 50 cents, an increase of over 30% from Friday’s 33 cent level.
Sentiment towards other majors remains mixed. Bitcoin is neutral after a decline and recovery, now hovering between the low and mid $90,000 levels. Ether is seeing bearish sentiment despite prices holding above $3,000. XRP is bullish after an 18% rise last week, and Binance Coin ($BNB) shows neutral sentiment after a fall below $700. Solana remains semi-bullish despite the underperformance, with a loyal community buying dips.
Meanwhile, Cardano’s ADA led a market-wide rally in the Asian afternoon on Friday with a 5.5% rise over the past 24 hours. The broad-based CoinDesk 20 (CD20) rose 1.04%, while Solana’s SOL, BNB Chain’s BNB, and Ether (ETH) rose 1%.
Traders showed a preference for AI Agent tokens Bixby, Cookie DAO’s COOKIE and ChainGPT which increased by up to 50% on Binance spot listings. The viral token ai16z grew by 11% and the agent category grew by 8% on average, leading the growth among all other crypto sectors.
