Dogecoin prices swing wildly over fake news – what now?

• Dogecoin’s price witnessed a temporary surge due to a rumor about the death of its mascot.
• Price of DOGE fell soon after as sentiment around the memecoin fell.

Dogecoin [DOGE] is one of the most popular memecoins in the crypto sector. Over the last 24 hours, the price of Dogecoin witnessed a wild swing over social media rumors.

Baseless rumors

DOGE witnessed volatile price swings following a fake social media rumor about the death of its beloved mascot.

After a pseudonymous X user shared a misleading screenshot on Twitter alleging the demise of Kabuso, DOGE’s token dog, prices surged by 9% to 8.3 cents.

Subsequently, the user admitted the screenshot was fake, deleted the post, made their account private, and eventually deleted the entire account.

#ClownShowAlert Name and Shame pic.twitter.com/R06YWw41KJ

— snailnews (@snailnews_) January 9, 2024

This incident highlighted the susceptibility of crypto markets to misinformation. The news came as the whole market was affected by another fake news related to Bitcoin spot ETFs.

However, the high fluctuation of DOGE’s price caused many addresses to become profitable, allowing them to sell their holdings.

What goes up

DOGE lost most of its gains later in the day and has retraced to approximately $0.078 at the time of writing.

Despite the temporary uptick in DOGE’s price, the overall outlook for DOGE looked bearish. This was indicated by the multiple lower lows and lower highs shown by DOGE’s price movement over the last month.

Moreover, the RSI of DOGE also declined showing that the bullish momentum around DOGE had fallen.

Source: Santiment

Social dynamics

As DOGE is a memecoin, a large amount of its price movement is driven by social metrics.

According to AMBCrypto’s analysis of Santiment’s data, it was seen that the social volume of DOGE remained consistent despite market volatility.

However, it is important to note that the weighted sentiment around DOGE fell considerably over the last few days. This meant that the overall number of negative comments had surpassed the number of positive comments around DOGE on social media.

In contrast to the negative sentiment around DOGE on social media, the total number of addresses holding DOGE continued to grow.

Read Dogecoin’s [DOGE] Price Prediction 2024-25

This suggested that many addresses were continuing to accumulate DOGE, implying that there was still high retail interest in DOGE.

If the trend continues, it may aid in DOGE’s price recovery in the future.

Source: Santiment