While Bitcoin tries to maintain its price stability, the selling pressure continues in altcoins. Particularly those in the crosshairs of the U.S. Securities and Exchange Commission (SEC). Altcoins refreshing their lows of 2023, or nearing those levels, face the possibility of further loss. Investors remain anxious, fearing the continuation of the SEC lawsuit by the US Department of Justice.
Dogecoin (DOGE) started the week with turbulence. After a quick recovery to $0.072 on Tuesday, the ongoing FUD pushed the price back to $0.065. Dogecoin (DOGE), the world’s largest memecoin by market value, was significantly affected by the FUD spread in the media following the SEC’s lawsuit against major exchanges. On-chain data indicate that Dogecoin’s long-term investors remain steady.
Dogecoin’s social sentiment is also in the negative. Santiment’s Social Volume metric, which tracks market sentiment by monitoring mentions of a project on Twitter and other relevant crypto media channels, indicates a significant decline. The chart below demonstrates how DOGE Social Volume dropped 72%, from 8219 to 2308, between June 5th and 9th.
Such significant drops in Social Volume trends suggest that many stakeholders are currently ignoring the asset.
Is Dogecoin (DOGE) at a Bottom?
Seasoned investors often aim to buy when market sentiment hits a new low. Bullish investors might interpret this as a signal that the downturn in DOGE prices has reached a turning point. If that’s the case, we should see a demand surge in the coming days. However, the FUD might suppress it.
Looking at short-term investors, we see a general trend towards selling. Despite the large sales on Monday triggering an 8% DOGE price drop, the Average Coin Age within the Dogecoin ecosystem is on an uptrend, as indicated by the following Santiment chart. Specifically, between June 1st and 9th, the DOGE Coin Age rose from 54,317 to 57,219, reflecting a 5% increase.
At the current price level of $0.068, Dogecoin holders will likely refrain from selling to avoid significant losses. Predictions derived from Santiment’s Market Value to Realized Value (MVRV) data suggest a more reasonable recovery to $0.08.
On the other hand, the SEC process could turn in favor of the DOGE community. As a minable coin, DOGE might not fall into the securities classification, unlike many other altcoins.