Social Sentiment Boosts Dogecoin Prospects as AI Agent Tokens See Friday Rebound
A decline in bitcoin (BTC) has shifted focus to other major cryptocurrencies, including Solana’s SOL and memecoin dogecoin (DOGE). Current market conditions suggest an opportunity for risk-on traders, supported by data and social sentiment.
“Dogecoin, crypto’s top meme coin, has been relatively quiet apart from a brief surge earlier this year,” analytics firm Santiment noted in a Thursday report. Using social sentiment and online chatter metrics, the firm observed that Dogecoin’s market cap has declined by 28% since its peak a month ago, while crowd sentiment has hit near year-low levels.
“This low sentiment indicates an opportunity for daring contrarians to capitalize on DOGE if the broader crypto market trends upward again,” the report stated. Current sentiment levels for DOGE are at 1 out of 5, presenting a contrarian opportunity for potential gains.
The sentiment aligns with earlier analysis from CoinDesk, which highlighted an uptick in activity among large DOGE investors or “whales.” Transactions exceeding $100,000 have increased, signaling potential short-term price growth. DOGE futures markets also hit record-high open interest earlier this week, although activity has since declined amid a broader market downturn.
Historically, January has been Dogecoin’s strongest month, with an average return of 85%. Technical indicators like the 50-day simple moving average (SMA) suggest a bullish trend for DOGE, with a short-term target of $0.50—a 30% increase from its current $0.33 level.
Other major cryptocurrencies show mixed sentiment. Bitcoin (BTC) remains neutral, fluctuating between $90,000 and $95,000. Ether (ETH) faces bearish sentiment despite holding above $3,000, while XRP is bullish after an 18% rise in the past week. Binance Coin (BNB) shows neutral sentiment after slipping below $700, and Solana (SOL) maintains semi-bullish momentum, driven by loyal community support.
Cardano’s ADA led a market-wide recovery in Asian trading hours on Friday, rising 5.5% in 24 hours. The CoinDesk 20 index climbed 1.04%, with Solana’s SOL, BNB, and ether gaining as much as 1%.
Meanwhile, AI Agent tokens outperformed other sectors, with Bixby, Cookie DAO’s COOKIE, and ChainGPT surging up to 50% following Binance spot listings. The viral token ai16z gained 11%, while the AI Agents category overall posted an 8% average increase, leading growth across all crypto sectors.
