DOGE is down 4.11% in the last 24 hours.
Dogecoin market sentiment has turned negative as investors become impatient.
Since its recent peak at $0.48, Dogecoin [DOGE] has struggled to maintain its bullish momentum. The coin has been trading in a range between $0.42 and $0.37 ever since.
In fact, as of writing, DOGE is trading at $0.3832. This marks a 4.11% drop on the daily chart.
The recent decline after a sustained uptrend is pointing to a potential shift in market momentum. An analysis from prominent cryptocurrency analyst Ali Martinez sees the current market situation as a bearish sign.
Dogecoin Market Sentiment Turns Bearish
In his analysis, Martinez argued that Dogecoin market sentiment has turned negative. According to him, it seems that traders have lost patience with the current price correction.
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Source: X
A sentiment shift from bull to bear reflects exhaustion among buyers as sellers dominate the market.
Usually, when sellers dominate, it leads to high selling pressure and excess supply, which in turn pushes prices down.
The dominance of sellers is evidenced by the fact that DOGE’s RSI has been decreasing over the past 10 days. This suggests that the majority of investors are selling to profit from recent trades and avoid further losses.
Source: Coinglass
Separately, according to Coinglass, short sellers are dominating with 54% on the 24-hour timeframe and 64% on the 4-hour timeframe. This implies that most investors are betting on further price declines.
What the DOGE chart shows
As observed above, the current market sentiment suggests that DOGE could continue to decline as the bullish momentum has weakened.
Source: Tradingview
First, we can clearly see the exhaustion and consolidation of the downtrend with the decline in the +DI. With the positive indicator continuously decreasing, this shows that the market's bullish momentum has been lost while the downtrend is consolidating.
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Source: Santiment
Additionally, Dogecoin’s DAA price differential has remained negative over the past week, suggesting that most investors are staying away from the asset.
With Dogecoin witnessing a shift in market sentiment, the coin could see more damage on its price chart. Therefore, if these conditions remain unchanged, DOGE could fall to $0.367.
However, if this dip creates a buying opportunity and buyers return, the coin could recover and reclaim the $0.40 resistance.