In the past 24 hours, Dogecoin (DOGE) has dropped by 4.11%, with the price retreating from a recent high of $0.48 to $0.3832, marking its continued consolidation and downtrend over the past few days.
Since then, DOGE's price has hovered between $0.42 and $0.37, failing to break through higher levels. This price pullback has raised concerns in the market about its future direction.
Market sentiment turns negative
Renowned crypto analyst Ali Martinez believes that the current market sentiment for Dogecoin has turned negative, with buyers fatigued and sellers in control. As prices consolidate, traders' patience is wearing thin, and market sentiment has shifted from bullish to bearish, reflecting disappointment over price breakthroughs.
RSI indicator declines
RSI (Relative Strength Index) is an important technical indicator often used to measure the strength of market sentiment. Over the past 10 days, DOGE's RSI has declined, indicating that most investors are selling to take profits and avoid further losses. This further confirms the view of sellers dominating the market.
Bears Dominate the Market
According to Coinglass data, bears have dominated the market in the last 24 hours, with short positions accounting for 54% of total trading volume, rising to 64% within a 4-hour timeframe, indicating that most investors expect DOGE's price to decline further.
Technical Chart Analysis: Strengthening Downtrend
From DOGE's technical chart, the market's upward momentum has faded, showing stronger downward pressure.
Future Price Prediction: Possible drop to $0.367
Considering the change in market sentiment and current technical indicators, DOGE may further decline, targeting a support level at $0.367. If market sentiment remains weak, prices may test this support level further.
However, if the decline can provide entry opportunities for buyers, DOGE may also see a rebound and break through the resistance level of $0.40 again. If buying returns, DOGE may regain upward momentum, but it is essential to observe whether there will be a shift in market sentiment.
Summary
Dogecoin is currently facing a shift in market sentiment and technical downward pressure, which could lead to further price pullbacks to $0.367. Investors should closely monitor changes in market sentiment and technical indicators, looking for potential buying opportunities or confirming whether prices will continue to decline.
