#BTCNextMove Since reaching a recent high of $0.48, Dogecoin [DOGE] has struggled to maintain its upward momentum. The memecoin has been trading within a consolidation range between $0.42 and $0.37 since then. In fact, as of the time of writing, DOGE is trading at $0.3832. This marks a decrease of 4.11% on the daily chart.
The recent decline following a sustained upward trend signals a potential shift in market dynamics. Accordingly, renowned cryptocurrency analyst Ali Martinez views the current market situation as a bearish signal.
Dogecoin's Market Sentiment Turns Bearish
In his analysis, Martinez suggests that the market sentiment for 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 as sellers dominate the market.
Typically, when sellers are in control, the selling pressure is high, and supply exceeds demand, thereby 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 recent profits and avoid further losses.
Specifically, 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 prices to decrease further.