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Dogecoin declines amid investor fatigue – Time to exit DOGE holdings?
Dogecoin’s market sentiment has taken a drastic turn, with investors growing increasingly impatient and the price reflecting this shift. Over the past 24 hours, Dogecoin (DOGE) has seen a decline of 4.11%, currently trading at $0.3832.
The recent downturn follows DOGE hitting a recent high of $0.48, only to struggle to maintain any upward momentum. The memecoin has been stuck in a consolidation range between $0.42 and $0.37 since then. This lack of movement has led many investors to lose patience and abandon ship, resulting in the downward trend.
Ali Martinez, a popular crypto analyst, points out that this shift in market sentiment from bullish to bearish reflects exhaustion among buyers with sellers dominating the market. When sellers are in control, it often leads to high selling pressure and oversupply, causing prices to drop.
Furthermore, the relative strength index (RSI) has been dropping over the past 10 days, indicating a strong trend of traders selling their DOGE holdings to lock in profits or avoid further losses.
In addition to this, short sellers are also gaining ground. As reported by Coinglass, a platform that tracks cryptocurrency market trends and sentiment, short sellers have taken control with 54% of the market on 24-hour timeframes and 64% on 4-hour timeframes. This is an extremely bearish signal, as it suggests most investors believe DOGE’s price will decline further.
The charts suggest that there could be more losses ahead for Dogecoin holders. The positive index (+DI) has been in a sustained decline, indicating the loss of upward momentum and strengthening downtrend. Additionally, the memecoin’s Price DAA divergence remains negative over the past week, implying that most investors are now avoiding DOGE altogether.
In light of these factors, it is possible that Dogecoin will drop to $0.367 in the near future. However, if this price decline creates a buying opportunity and investors reenter the market, DOGE could potentially recover and reclaim the $0.40 resistance level.
Source: ambcrypto.com
