After showing signs of recovery between August 19th and 20th, the meme cryptocurrency Degen (DEGEN) experienced a significant drop in price.
According to data from CoinMarketCap, DEGEN hit a historical low of $0.0074 on August 18th but partially recovered some of the losses during the broader memecoin market rebound.
On August 17th, DEGEN’s social activity reached a record level, with a social dominance of 2,970% and 100 mentions, according to a Santiment report. Social dominance indicates the share of online cryptocurrency discussions concentrated on specific assets compared to the top 10 cryptocurrencies.
Starting from August 18th, the bearish sentiment towards DEGEN sharply turned bullish, with the weighted sentiment reaching a new all-time high of 2.75.
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This fundamental indicator suggests the start of altcoin season ahead.
This change led to increased trading activity and briefly pushed DEGEN’s price above $0.01.
However, profit-taking followed, and as of writing this article, the price has dropped by 14% to $0.009875.
From a technical indicator standpoint, we can assume that DEGEN may further decline. The stop-and-reversal (SAR) indicator has remained above the DEGEN price since June 6th, indicating a continued downward trend.
Despite recent rebounds, indicators like SAR highlight the current downward pressure on DEGEN, reflecting changes in trader sentiment.