Dogecoin (DOGE) Price Prediction: Market Sentiment Turns Bearish as Memecoin Struggles to Maintain Upward Momentum

Since hitting a recent high of $0.48, Dogecoin [DOGE] has struggled to maintain an upward momentum. The memecoin has traded in a consolidation range between $0.42 and $0.37 since.

Dogecoin [DOGE] price charts have depicted a shift in market sentiment from bullish to bearish. This bearish sentiment is fueled by a consolidation in DOGE’s price action, which has left traders impatient.

As a result of this impatience, traders have shifted their market sentiment from bullish to bearish. This shift is evident in the RSI’s movement over the past 10 days, which shows that most investors are selling their DOGE holdings to capitalize on recent gains and avoid further losses.

Moreover, short sellers are also dominating the market, with 54% on 24-hour timeframes and 64% on 4-hour time frames. This dominance implies that most investors are betting on the prices to decline further.

With the bearish sentiment strengthening, DOGE could see further drops as upward momentum has exhausted. This exhaustion is evident in the decline in +DI, which suggests that the market’s upward momentum is lost while the downtrend is strengthening.

Additionally, Dogecoin’s Price DAA divergence has remained negative over the past week, which implies that most investors are avoiding the asset.

If these conditions persist, DOGE could drop to $0.367. However, if this dip creates a buying opportunity and buyers reenter, the memecoin could recover and reclaim the $0.40 resistance level.