thecryptobasic.com
Dogecoin (DOGE) traders see negative returns amid latest market slump, but Santiment analysts believe this might be the opportune time to buy.
Amid macroeconomic headwinds, crypto asset prices have struggled in recent weeks, and even traders of the popular light-hearted doggy-themed crypto Dogecoin (DOGE) have not been able to escape the rut as has been recently highlighted by crypto analytics platform Santiment.
Dogecoin (DOGE) Traders See Red
The average returns of Dogecoin (DOGE) traders are back in the red. This is according to Santiment data shared on Wednesday, January 8.
Per the data, the average returns of DOGE traders have fallen sharply from highs of about 72% in November 2024 to a negative 8.89% as of Wednesday. The firm deduced this using the intraday market value to realized value ratio (MVRV) over the past 30 days.
The MVRV measures the difference between an asset’s price and the average price at which coins were last moved, presenting insights into the profitability of holders.
Meanwhile, DOGE traders are not the only ones to experience this decline in average returns. The data also shows that the average return for Bitcoin, Ethereum, and Cardano traders is also in the red at -3.73%, -7.71%, and -6.69%, respectively.
The data comes on the heels of a market slump this week sparked by U.S. economic data suggesting that the Federal Reserve is unlikely to be in any hurry to continue its interest rate cut regime. DOGE, in particular, has seen a nearly 19% drop from highs of $0.39831 on Tuesday to lows of $0.32444 on Wednesday.
Still, Santiment Feed has suggested that the recent decline in returns could present an opportunity for traders.
Not a Time to Panic?
Analysts at Santiment believe the recent decline in returns for DOGE traders may not be a time to panic but rather search for opportunity.
The firm argued that it was “less risky” to buy when average returns for traders are in the red. It highlighted that times like these were when most pro-traders made their money, citing the famous Nathan Rothschild quote, “The time to buy is when there’s blood in the streets.”
Santiment Feed suggests that this could be a good play for traders as it anticipates a short to medium-term recovery for crypto assets. Still, the firm warned that, as with most things, there was no guarantee.