- DOGE has sunk more than 5% in the last 24 hours.
- Statistics and market indicators remained bearish.
The crypto market has recently turned bearish, causing most coins including Dogecoin [DOGE], to register price drops. While many fear a further decline in the market cap of several cryptos, DOGE may have a different plan in the future.
Dogecoin could turn bullish
DOGE’s last week has been disastrous, as its value fell by more than 11%. In the last 24 hours alone, the price of the meme coin fell by more than 5%.
According to CoinMarketCapAt the time of writing, Dogecoin was trading at $0.1401 with a market cap of over $20 billion, making it the 8th largest cryptocurrency.
However, things could change in DOGE’s favor in the coming days as a bullish pattern forms on the 6-hour chart.
A successful breakout above the pattern could result in a massive bull rally, allowing DOGE to recoup losses and even reach the March 2024 high in the following weeks.
Source: TradingView
What statistics suggest
As the possibility of a trend reversal appeared on DOGE’s 6-hour chart, AMBCrypto planned to analyze the statistics to see what they had to suggest.
According to our analysis, Dogecoin volume has fallen sharply over the past week. As of press time, however, the graph had begun to rise. A volume increase while price decreases are bearish because they indicate a further decline in value.
Source: Santiment
The memecoin’s MVRV ratio has also fallen sharply in recent days. At the time of writing, DOGE’s MVRV ratio stood at -16.5%. Due to the huge price drop in the past week, DOGE’s total profit supply decreased.
In fact, AMBCrypto looks at IntoTheBlock’s facts revealed that only 70% of DOGE investors made a profit.
The bearish price action also negatively affected DOGE’s social metrics. The meme coin’s social value dropped slightly, reflecting its less popularity in the crypto space.
The weighted sentiment remained in the negative zone, meaning that the bearish sentiment around DOGE was dominant in the market.
Source: Santiment
The chances of DOGE initiating a bull rally looked even slimmer when we checked the market indicators. The MACD showed a clear bearish upper hand on the market.
The Relative Strength Index (RSI) also registered a decline and fell further below the neutral line. These indicators suggested that investors could witness a further decline in DOGE’s price before it makes a comeback.
Source: TradingView
Realistic or not, here it is The market capitalization of DOGE in terms of BTC
It wasn’t just Dogecoin that showed a bearish performance. Shiba Inu [SHIB]the second largest meme coin, also followed the trend.
According to CoinMarketCap, SHIB’s price has fallen by more than 5% in the last 24 hours alone. At the time of writing, it was trading at $0.00002349 with a market cap of over $13.8 billion.