Dogecoin (DOGE) and Shiba Inu (SHIB) have recently gained significant social media attention, marking their highest levels of social dominance in five months, according to Santiment's Social Dominance metric. This increased attention follows notable price rallies in these meme coins.
The surge in social discussions reflects a positive sentiment in the meme coin market, yet it also serves as a cautionary signal. This is due to the Fear of Missing Out (FOMO) phenomenon, which can lead to hasty investments and unsustainable market trends.
Although FOMO may initially inflate prices, it often results in corrections as enthusiasm wanes. Historically, crypto prices tend to move against crowd sentiment, suggesting the current hype could predict an impending price peak. Investors are advised to exercise caution.
In contrast, Santiment highlights less-discussed coins like Arbitrum and Optimism as potential investment opportunities, suggesting it may be more profitable to invest where crowd attention is lacking.
As of the article's writing, Dogecoin's price has surpassed $0.14, representing an almost 6% increase in a single day, indicating that meme coin rallies continue despite warning signals.
