Dogecoin (DOGE) continues to plummet, is the doomsday crisis coming? Is it time for investors to flee in panic?
After climbing to a recent high of $0.48, Dogecoin (DOGE) has found it difficult to maintain its upward momentum.
Given that the market has always been in a state of large volatility, Dogecoin has been trading in a consolidation range of $0.42 to $0.37.
As of today, the price of Dogecoin is $0.3832, showing a 4.11% decline compared to the daily chart.
Most Dogecoin traders are bearish, which may indicate that the market structure is about to change. As prices have been hovering in a consolidation range, bulls are becoming increasingly anxious.
This change in sentiment from bullish to bearish means that buyers have exhausted their power and sellers are in a dilemma and can hardly do anything.
When sellers are dominant, selling pressure is extremely strong, and supply far exceeds demand, causing prices to continue to fall.
Dogecoin’s downtrend is further supported by the decline in the Relative Strength Index (RSI), which has been falling over the past 10 days.
Some investors are selling their recent gains without covering their positions that could fall, which has undoubtedly exacerbated the downward trend in prices.
The positive indicator (+DI) has continued to decline, which clearly shows that its upward momentum is gradually fading. At the same time, the continuous strengthening of the downward trend means that buying behavior is becoming increasingly scarce, and bearish pressure is continuing to accumulate.
