DOGE, SHIB, XRP: Santiment Flags "Buy-the-Dip" Opportunities Despite Market Slump

Santiment flags DOGE, SHIB, and XRP as 'buy the dip' prospects amidst a sentiment slump and reduced selling pressure since Bitcoin's March 2024 peak.
Crypto Market DOGE SHIB XRP 

Key Insights

  • The crypto market has slumped since Bitcoin's all-time high in March 2024, with many altcoins in heavy losses.

  • Santiment in a tweet, identified attractive buying opportunities in three altcoins (DOGE, SHIB, and XRP) due to their extremely low crowd sentiment (FOMO).

  • Memecoins like Dogecoin and Shiba Inu have been hit especially hard, with sentiment dropping significantly since their yearly highs

  • Investor sentiment towards these altcoins has changed, with metrics like exchange outflows showing less selling pressure.

  • All three altcoins are trading much lower than their yearly highs, which suggests that they might present " buy-the-dip" opportunities.

The start of the week hasn’t been a very green one for the crypto market.

Data from Coinglass shows that this year, since Bitcoin hit its last all-time high in March, the bulls have suffered the worst liquidations across several altcoins, with many trading in the red on all timeframes.

<div class="paragraphs"><p>The crypto liquidations chart</p></div>

The crypto liquidations chart

However, amid all the bearish displays of strength, there might be a silver lining.

In particular, Santiment has just flagged all-time lows on a certain metric with these three altcoins.

But instead of the sell verdict, the analytics company recommends buying and taking advantage of the lack of “FOMO”.

Let’s take a look at these altcoins, and what Santiment means:

Memecoins and XRP Experience Downturns

This week, in particular, has been especially red for the crypto market. On Monday, Bitcoin and most of the altcoins turned red.

Since Bitcoin's all-time high only months ago, investors have increasingly been shying away from the crypto market, expecting its conditions to improve so they can jump in once again.

Santiment, in a recent X post, pointed out that this apathy (or lack of FOMO) is especially strong with memecoins like Dogecoin and Shiba Inu, along with the payment-focused coin XRP.

In sum, most retail traders appear to have “given up” on these three—which is unsurprising because DOGE has fallen by around 46% from its yearly high in April 2024, while SHIB has also fallen by more than half since then.

What Does Social Sentiment Have To Do With Price?

The difference between whales and retail investors is that whales sometimes show interest and even buy, especially when the market FOMO dies down.

Santiment says that the crashes in these cryptocurrencies have affected their crowd sentiment. The positive mentions of XRP, DOGE, and SHIB on social media platforms like Twitter and Telegram have dropped to their lowest levels this year.

Because of this, Santiment argues that this might be a prime buying opportunity for “patient traders”, looking to buy the dip.

Moreover, we have metrics like HODLer balances on these cryptocurrencies to back Santiment’s outlook up.

Investor Sentiment Really Has Changed

For example, IntoTheBlock data shows a marked drop in the correlation between Dogecoin and Bitcoin, from around 89% to a lower 69%.

This means that Dogecoin is now less under Bitcoin's control and is free to move up (or down, as it chooses).

Moreover, we also have a significantly higher rate of exchange outflows ($212.9 million) compared to inflows (198 million), suggesting that investors are less inclined to sell.

<div class="paragraphs"><p>Dogecoin’s investor balances</p></div>

Dogecoin’s investor balances

Shiba Inu also shows a similar outlook, with a 64% correlation with Bitcoin and around 76% of its HODLers keeping their coins for more than a year.

At the time of writing, Dogecoin trades at around $0.122, Shiba Inu at $0.00001816, and XRP at $0.49.

These prices are all significantly lower than their yearly and all-time highs and present attractive "buy the dip" opportunities.

Disclaimer: Voice of Crypto aims to deliver accurate and up-to-date information, but it will not be responsible for any missing facts or inaccurate information. Cryptocurrencies are highly volatile financial assets, so research and make your own financial decisions.

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