Dogecoin Price Drops 4% as Market Sentiment Turns Negative: Can Bulls Push to $0.75?

Highlights:

• The Dogecoin price has dropped 4% to trade at $0.3876, despite a rise in trading volume to $4.09B.
• A crypto analyst has mentioned that traders seem to be getting impatient during the ongoing price consolidation as DOGE market sentiment turns negative.
• The southbound RSI shows falling momentum, and the sell signal from the MCD indicator could cause the DOGE price to fall to $0.27 if the o.35 support gives way.

Dogecoin’s price has plummeted 4% to trade at $0.3876 despite rising trading volume. Its daily trading volume has shot up 9% to $4.09 billion, showing an increase in market activity. Despite the slight fall, DOGE is now up 342% in a year and 6% in a month; however, it has dropped 3% in a week. 

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Dogecoin Statistical Data

Based on CoinmarketCap data:

• DOGE price now – $0.3876
• Trading volume (24h) – $4.09 billion
• Market cap – $57.07 billion
• Total supply – 147.25 billion
• Circulating supply – 147.25 billion
• DOGE ranking – #7

Dogecoin Price Shows Waning Bullish Momentum

The Dogecoin price is still in the consolidation phase; however, the bears seem to have the upper hand. Looking at the daily chart outlook, the token has pushed into a consolidation phase with the lower support at $0.3723 and upper resistance at $0.4649. This might act as an accumulation period before a substantial rally to $0.5 or $1 soon. 

Meanwhile, the Dogecoin price is sitting on top of confluence support formed by two key indicators: the 200-day Simple Moving Average (SMA) (blue) and the 50-day SMA (green), which are at $0.1764 and $0.3513, respectively. 

The Relative Strength Index (RSI) reinforces the downtrend, tilting the odds towards the bears.  This is evident as the RSI has plunged below the 50-mean level, currently at 48.00. The southbound RSI shows momentum falling, which shows that traders might be getting impatient.

Elsewhere, renowned analyst @ali_charts on X says that the “Market sentiment for Dogecoin has turned negative. It seems as if traders are getting impatient during the ongoing price consolidation.”

Market sentiment for #Dogecoin $DOGE has turned negative. It seems as if traders are getting impatient during the ongoing price consolidation! pic.twitter.com/yb29147Bvg

— Ali (@ali_charts) December 17, 2024

Increased selling pressure could see the bears breach below the lower boundary of the consolidation channel. 

On the other side of the fence, the Moving Average Convergence Divergence (MACD) introduces a bearish outlook on the daily chart timeframe. A sell signal manifested when the blue MACD line flipped below the orange signal line, revealing that declines should be expected before the Dogecoin price rebounds above $0.48. This impending correction could gain momentum if the MACD continues to drop toward the neutral zone (0.00) and later into the negative region.

Will the Bulls Gain Momentum and Breakout to $1?

Traders looking forward to new long positions in DOGE may want to wait until the token jumps above the $0.46 barrier. However, the uptrend would only be validated fully once the Dogecoin price jumps above the consolidation channel at $0.48. A significant rally may erupt from here, propelling DOGE for gains targeting $0.75 and $1, respectively.

On the downside, if the bears continue dominating the Dogecoin market, the DOGE price could fall. The southbound RSI shows momentum falling. The MACD also hints at a sell signal, tilting the odds toward the sellers. Similarly, the MACD histograms are fading, a sign of waning bullish sentiment.

If the $0.3513 gives way, the Dogecoin price could fall through. Nevertheless, the bullish sentiment for the DOGE price would only be invalidated below the $0.2796 support. Such a move would also indicate a change in market structure.

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