The blockchain analytics company Santiment has identified a potential cause for the recent corrections experienced by Dogecoin and Apecoin.
Dogecoin & Apecoin Among Memecoins Affected by FOMO Recently
In a recent post on X, Santiment explained that the Positive Sentiment vs. Negative Sentiment Ratio has surged for Dogecoin and other memecoins lately.
The “Positive Sentiment vs. Negative Sentiment Ratio” serves as an indicator measuring whether social media platforms are predominantly reflecting positive or negative sentiments at this time.
This metric utilizes a machine-learning model created by the analytics firm, designed to distinguish between comments that exhibit negative and positive sentiments.
A value greater than zero indicates that the number of positive posts, threads, or messages exceeds those that are negative. Conversely, a value below this threshold suggests a prevailing bearish sentiment on social media.
Here is the chart provided by Santiment, illustrating the trends in this indicator for four assets over recent months:
The chart demonstrates that both Dogecoin and Apecoin recently experienced increases in the Positive Sentiment vs. Negative Sentiment Ratio, suggesting a significant volume of positive comments about these cryptocurrencies on social media.
Notably, as highlighted by the analytics firm, these spikes coincided with peaks in the prices of DOGE and APE. The other two memecoins illustrated in the chart, GIGA and GOAT, followed a similar trend, although their peaks occurred earlier than those of Dogecoin and Apecoin.
While positive sentiment can indicate market confidence, an influx of it might signal excessive hype—a phenomenon that has historically led to market peaks not only for memecoins but for cryptocurrencies as a whole.
“Prices generally move in the opposite direction of the prevailing crowd expectations, and when sentiment becomes extreme on either the bullish or bearish side, it becomes predictable when to buy or sell,” Santiment explains.
Considering the recent timing of positive spikes in the indicator, it seems plausible that the Fear Of Missing Out (FOMO) among investors contributed to the corrections that Dogecoin and other cryptocurrencies have experienced.
It will be important to monitor the Positive Sentiment vs. Negative Sentiment Ratio in the days ahead, as any declines in its value may allow for a resumption of bullish momentum for these coins.
DOGE Price
Dogecoin approached the $0.150 mark a few days ago; however, following the subsequent correction, its price has retracted to approximately $0.136.
