Dogecoin And Shiba Inu Social Dominance At 5-Month High — Can FOMO Stall Price Growth?
19 Octobre 2024 - 11:00AM
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Over the past week, blue-chip assets like Bitcoin (BTC) and
Ethereum (ETH), have been major topics of discussion in the
cryptocurrency space — and rightfully so — after a strong positive
performance week. Meme coins such as Dogecoin (DOGE) and Shiba Inu
(SHIB) have also enjoyed a fair share of the attention in the last
seven days. According to the latest on-chain data, these asset
classes have been topping the social charts in the past few days,
with the majority of the crypto crowd talking about them,
especially after price rallies. Here’s how the rising social
sentiment can impact the prices of Dogecoin and Shiba Inu. Will
FOMO Sustain The Meme Coin Rally? In a recent post on the X
platform, Santiment shared that large-cap meme tokens have been
drawing a great deal of social media attention in the past few
days. According to the blockchain analytics firm, top meme coins
like Dogecoin and Shiba Inu are seeing their most crowd discussion
since May. Related Reading: Aave Address Count On Optimism Rapidly
Growing, Will Price Rise To New 13-Month High? This on-chain
observation is based on the Santiment Social Dominance metric,
which reflects the share of the discussions in crypto media
referring to a particular asset or phrase. Santiment said in the
post on X: Top meme coins (DOGE, SHIB, etc.) [are] seeing [their]
most crowd discussion since May (crowd FOMO may soon cause top).
Indeed, this positive shift in investor sentiment might signal
renewed faith in the meme coin market. However, the increasing
crowd hype is often a warning sign of a potential price top, as
rising FOMO (fear of missing out) can dampen the momentum of
developing price rallies. Fear of missing out, commonly called
FOMO, is a phenomenon where investors hastily purchase assets in
high demand out of fear of forfeiting potential gains. While FOMO
has been known to drive a coin to a higher value in the short term,
excessive FOMO often leads to unsustainable upward trends and
subsequent corrections. Furthermore, crypto prices historically
tend to move in the opposite direction of the crowd. Hence, if the
crypto crowd is paying this much attention to top meme coins,
investors might want to approach the market with caution.
Interestingly, Santiment pinpointed top Layer 2 tokens, including
Arbitrum and Optimism, as potentially lucrative investment
alternatives due to their extremely low social dominance.
“Speculative coins can certainly still pump a bit longer, but
historical data shows that it pays to go where the crowd isn’t
looking,” the on-chain firm added. Dogecoin Price At A Glance As of
this writing, the price of Dogecoin has broken above the $0.14
level, reflecting an almost 6% increase in the past day. Related
Reading: Expert Calls On Ripple Community To Collectively Send XRP
Price On 1,800x Rally To $1,000 Featured image from iStock, chart
from TradingView
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