Google and Twitter data show that Dogecoin’s rise has been accompanied by a sharp increase in the volume of Google tweets and searches for this digital currency, but sentiment towards this marginal digital currency is drastically decreasing.
to the the report The Coin Telegraph, Dogecoin’s uptrend last week was a historic event; But despite all the hype, social media data suggests that the digital currency’s uptrend is likely to be over.
Launched in 2013, the digital currency, which has been at the center of nonsense and scams in recent years, has marked another chapter in its astonishing history in the past few days.
Dogecoin’s trading volume doubled on Friday, and the digital currency was able to surpass Ethereum in this benchmark. The event was the cornerstone of a dramatic rise in the price of the Dogecoin, which doubled overnight, bringing its growth to 5,000 percent this year.
But Dogecoin is essentially a meme coin or comic currency, and memes are promoted by social networks and are essentially affiliated with these networks. When a honey can not spread, its price falls.
The Dogecoin, which had risen more than $ 0.4, fell to $ 0.24 but was able to offset some of the decline. The digital currency is currently trading at around $ 0.29. But data from The TIE and the Cointelegraph Markets Pro show that further declines are looming for the coin.
Trading volume versus emotions
Google Trends tweeted on Friday about the search habits of Bitcoin and Dodge Coin traders around the world. According to the tweet, while most of the world was focused on bitcoin, American traders focused only on Dodge Coin.
Google HitMap is also compatible with Thai data. The total volume of tweets referring to Dodge decreases during American sleep hours, rises during the day, and often peaks at noon in the Eastern American Time Zone (EST). Interestingly, when the price of Dodge Coin is rising, the volume of these tweets increases.
Of course, simple search statistics and the volume of tweets do not always match the growth of the Dogecoin price. As the Google Trends infographic shows, the feelings of increased volume may be mixed. For example, many of the top search terms are for traders trying to predict how much more Dogecoin has the potential to grow.
This lack of confidence has also spread to Twitter. While sentiment for the currency was at its strongest as it rose to $ 0.16 on April 14, the trend of “waves” of sentiment continued to decline as prices continued to rise, along with the volume of tweets. While the total volume of tweets peaked at Dodge at $ 0.40, it has been declining for several days now.
Eventually, although the volume of tweets and emotions pushed Dogecoin to its peak, it now appears that a rapid reversal of the price is bringing the digital currency back to Earth.