Dogecoin Drops Amid Investor Fatigue - Is It Time to Exit DOGE Holding?

Since reaching a recent high of $0.48, Dogecoin [DOGE] has struggled to maintain its upward momentum. The memecoin has been trading within a consolidating range between $0.42 and $0.37 since then. In fact, as of the time of writing this, DOGE is trading at $0.3832. This marks a 4.11% decrease on the daily chart. The recent decline after a sustained uptrend signals an underlying change in market dynamics. Cryptocurrency analyst Ali Martinez sees the current market situation as a bearish signal. Market Sentiment for Dogecoin Turns Pessimistic In his analysis, Martinez believes that the market sentiment of Dogecoin has turned negative. According to him, it seems that traders have become impatient with the current price consolidation. The shift in market sentiment from bullish to bearish reflects the exhaustion of buyers while sellers dominate the market. Usually, when the seller has the upper hand, selling pressure will be high and supply will exceed demand, pushing prices down. This dominance among sellers is evidenced by the fact that DOGE's RSI has declined over the past 10 days. This indicates that most investors are selling to take advantage of recent profits and avoid further losses. According to Coinglass, short sellers are dominating with 54% in the 24-hour timeframe and 64% in the 4-hour timeframe. This implies that most investors are betting on further price declines. What Does the DOGE Chart Suggest? As observed above, the current market psychology indicates that DOGE may continue to decline as the bullish momentum has been exhausted. Firstly, we can see the depletion and strengthening of the downward trend with the decline of +DI. With the positive index continuously declining, this shows that the market's upward momentum has been lost while the downward trend is strengthening. In addition, the DAA price divergence of Dogecoin has remained negative over the past week. This implies that most investors are staying away from this asset. With Dogecoin witnessing a change in market sentiment, memecoins may see more losses on its price chart. Therefore, if these conditions persist, DOGE could drop to as low as $0.367. However, if this price drop creates buying opportunities and buyers return, memecoin could recover and reclaim the $0.40 resistance level. DYOR! #Write2Win #Write&Earn $DOGE {spot}(DOGEUSDT)