According to new reports, Dogecoin market sentiment has dropped significantly and turned negative again Price consolidated. This bearish trend raises the question of whether it is time for investors to buy or sell their DOGE tokens to avoid future losses.
The mood in the Dogecoin market is waning
On Tuesday, crypto analyst Ali Martinez said announced X (formerly Twitter) says that Dogecoin market sentiment has turned negative, signaling a shift in investor confidence in the meme coin.
Martinez shared a price chart that highlights two key metrics that suggest DOGE market sentiment is drastically deteriorating. The first metric, shown by the blue bars as social volume, represents the number of social media mentions surrounding Dogecoin.
As a meme coin, social sentiment plays a crucial role in DOGE’s price performance. An increase in social volume typically indicates increased interest or Hype in a cryptocurrencywhich ultimately drives demand and increasing adoption.
The second metric, represented by the red bars in the chart, reflects Dogecoin’s weighted sentiment. This metric captures the overall positive and negative sentiment around DOGE on social media. When the weighted sentiment falls below the zero line into negative territory, it signals that investors and traders have a bearish outlook on the cryptocurrency.
In the chart, the weighted sentiment for DOGE has turned negative several times, especially during periods of consolidation. Consequently, Martinez revealed that the recent change in Dogecoin market sentiment is due to this ongoing price consolidation.
The analyst suspects that investors and traders are becoming increasingly impatient as DOGE continues to consolidate. The price remained stagnant despite its increase at $0.4. With the The mood becomes pessimisticDogecoin price could face additional challenges, leaving investors unsure whether to buy or buy sell their inventory to mitigate possible losses.
Moving forward, Martinez observed that the red sentiment line on the DOGE chart fell below 0.597, reflecting negative market sentiment. This bearish indicator, combined with Dogecoin’s slow price growthsuggests that interest and optimism surrounding the meme coin has waned for now.
Analysts say: The longer the consolidation, the bigger the rally
Many in the crypto market have expressed concerns about the recent change in market sentiment due to DOGE’s extensive price consolidation. However, crypto analyst Cephii said suggested that this consolidation could represent a significant catalyst Dogecoin price rally.
“The longer we consolidate here, the bigger the crack will be,” said the analyst. This suggests that Dogecoin could see an explosive price rise after its consolidation ends. Based on his price chart, the analyst has predicted a possible rise towards $0.8 once DOGE can Break through key resistance areas.
Additionally, Cephii noted that Dogecoin’s social metrics remain strong. This is likely due to the ongoing uptrend Feeling within the Dogecoin community, even amid the negative changes in market sentiment.
Featured image created with Dall.E, chart from Tradingview.com