In the past 24 hours, Dogecoin (DOGE) has dropped by 4.11%. As investors gradually lose patience, the market sentiment for Dogecoin has turned negative.
Since recently reaching a peak of $0.48, DOGE has failed to maintain upward momentum and is currently oscillating between $0.42 and $0.37.
Currently, the price of DOGE has fallen back to $0.3832, indicating a 4.11% decline on its daily chart.
This decline occurs after a series of increases, which may indicate a change in market momentum. Renowned cryptocurrency analyst Ali Martinez suggests that this trend could be a signal of a bear market.
Dogecoin market sentiment turns bearish.
According to Martinez's analysis, the market sentiment for Dogecoin has turned negative, noting that traders seem to have lost patience with the current price adjustment. This suggests that the market may be undergoing a correction, and the outlook is not optimistic in the short term.
The psychological shift from a bull market to a bear market reflects buyer fatigue, with sellers beginning to dominate.
Typically, when sellers dominate the market, there is strong selling pressure and oversupply, which often drives prices downward.
Signs of sellers dominating the market can be seen from the decline in DOGE's Relative Strength Index (RSI) over the past 10 days. The downward movement of the RSI indicates that the vast majority of investors are choosing to sell, possibly to take profits from recent gains or to avoid further losses. This behavior exacerbates negative market sentiment, further pushing prices down.
Furthermore, according to Coinglass data, short-term sellers have dominated in the past 24 hours, reaching 54%, and even as high as 64% in the past 4 hours. This indicates that most investors are betting that DOGE will decline further.
What do DOGE's charts show?
As mentioned earlier, the current market sentiment suggests that DOGE may continue to decline. The main reason is that the upward momentum has significantly weakened.
Firstly, we can clearly see the consolidation of market fatigue and downward trends, especially with the decline of +DI (Positive Directional Indicator). A sustained decline in +DI indicates a gradual loss of upward momentum, reflecting weakened buying power in the market and shifting sentiment towards pessimism. As +DI continues to decline, it indicates that the downward trend is being solidified, increasing selling pressure, and prices may continue to face downward pressure.
Additionally, Dogecoin's DAA (Daily Active Addresses) has remained negative over the past week, indicating that most investors are moving away from this asset. A negative DAA usually means selling outweighs buying, leading to weakened investor confidence and bearish market sentiment.
As Dogecoin experiences a shift in market sentiment, this currency may encounter more downward pressure on its price chart. Therefore, if these market conditions remain unchanged, DOGE could further decline to the support level of $0.367.
However, if the decline presents a buying opportunity for the market and buyers re-enter, DOGE could potentially rebound, breaking through the current lows and challenging the resistance level of $0.40.
