Dogecoin (DOGE) price has maintained a stagnant structure near the $0.06 region for a large part of September, despite many projects in the top 20 experiencing significant gains. Ongoing data analysis continues to explore how the recent change in social sentiment can prompt whale investors to take action in the coming weeks.
The price performance of Dogecoin in September revealed a decline in investor interest in the broader memecoin markets, which was not promising. Unlike emerging memecoins, the social sentiment surrounding DOGE continued to decline. Could this be a signal for whale investors to step in and take advantage of the downturn?
Dogecoin (DOGE) price continued to stay at the $0.06 level in September, despite the bullish winds in the crypto markets triggered by the recent Fed interest rate decision. On-chain data showed that whales have maintained their daily transactions within the range of 14 billion to 19 billion DOGE since September.
The occurrence of whale transactions provides a summary of confirmed transactions exceeding $100,000 in total value on a specific trading day. This decline in high transaction volumes may indicate that Dogecoin whales have paused their trading activities this month.
This situation might have affected the liquidity and fluidity in DOGE spot markets, which could have played a significant role in the recent stagnant prices. However, if whales increase their trading activities while DOGE social sentiment continues to decline, they can trigger a significant movement in Dogecoin price.
Dogecoin holders have started to express their dissatisfaction with the uncertain price movement. The chart below demonstrates how weighted sentiment for DOGE has been trending towards the negative zone since the beginning of the month. As of September 21, it stands at -0.56 in the red zone after weeks of poor performance.
The Weighted Sentiment metric evaluates the overall sentiment and atmosphere in a specific blockchain ecosystem. Essentially, it assesses the total number of positive comments against negative comments about the project. When Weighted Sentiment shows a negative trend in the midst of neutral price movement, strategic investors may interpret it as a perfect time to buy into the increasing panic and downturn. As Dogecoin price is currently under downward pressure, whales may consider it as a significant signal to take action.