Dogecoin’s Fear and Greed Index is 35! Soon, We will See FOMO

Fear and Greed Index of Dogecoin shows some improvement in this meme coin in 2022

In what may be described as a welcome relief for the crypto market after a long time one finds some signs of recovery. One can particularly mention a popular meme coin, Dogecoin (DOGE) in this regard. It is common knowledge that it had been hit like other cryptocurrencies when the downward slide affected the crypto market making it not only fluctuating but volatile. But only recently the specific Fear and Greed Index (FGI) that is slightly elaborated down below reflects the sign of improvement as far as DOGE is concerned.

In the Fear and Greed Index (FGI), created by alternative.me portal, DOGE has reached 35 out of 100. It is calculated by taking into account the prices of different cryptocurrencies, as well as their volumes and volatility. The FGI is a compilation of seven different indicators that measure some aspect of stock market behaviour. Zero means "Extreme Fear", while 100 means "Extreme Greed". Extreme fear can be a sign that investors are too worried. That could be a buying opportunity. When crypto investors are getting too greedy, that means the market is due for a correction. It is a way to measure stock market movements and to check if the stocks are fairly priced as well in the crypto market.

The basic premise is that excessive fear tends to drive down share prices, and too much greed tends to have the opposite effect. FOMO is the 'fear of missing out' is the feeling of apprehension that one is either not in the know or missing out on information, events, experiences, or life decisions that could make one's life better.

It is important to note the backdrop of this meme coin, Dogecoin's 'better days'. The DOGE price showed a strong rally after Tesla's CEO Elon Musk expressed his support for it in late June this year. The price soared more than 35% in a week, on the back of strong buying. The DOGE price skyrocketed from US$0.051 to US$0.077 in late June. Dogecoin meme coin has also witnessed massive trading volume at the same time, which pushed prices to rally by 12 per cent. It was then predicted that all this may further decide bullish or bearish momentum in the crypto market in the coming times.

There is more or less consensus on the point that the crypto market is overwhelmingly guided by sentiment. This is also true of the Fear and Greed Index or FGI, and its creators also acknowledge it. In view of this it may not be practicable to make any definitive predictions. However, from what can be learnt from the earlier trends some are now ready to make a forecast that a FOMO-induced buying momentum is in the pipeline for the meme coin among the crypto investor communities.

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