- DOGE sank by more than 5% in the last 24 hours.
- Metrics and market indicators continued to remain bearish.
The crypto market recently turned bearish, causing most coins, including Dogecoin [DOGE], to register price declines. While several fear a further decline in the market capitalization of multiple cryptos, DOGE might have a different plan going forward.
Dogecoin might turn bullish
DOGE’s last week was disastrous, as its value dropped by more than 11%. In the last 24 hours alone, the meme coin’s price declined by more than 5%.
According to CoinMarkertCap, at the time of writing, Dogecoin was trading at $0.1401 with a market cap of over $20 billion, making it the 8th largest crypto.
However, things might turn in DOGE’s favor in the coming days as a bullish pattern forms on its 6-hour chart.
A successful breakout above the pattern could result in a massive bull rally, which might allow DOGE to recover the losses and even touch its March 2024 highs in the weeks to follow.
Source: TradingView
What metrics suggest
Since the possibility of a trend reversal appeared on DOGE’s 6-hour chart, AMBCrypto planned to analyze its metrics to see what they had to suggest.
As per our analysis, Dogecoin’s volume dropped sharply over the last week. However, at press time, the graph started to increase. A rise in volume while price drops are bearish as they indicate a further dip in value.
Source: Santiment
The memecoin’s MVRV ratio also decreased sharply in the last few days. At the time of writing, DOGE’s MVRV ratio had a value of -16.5%. Because of the massive drop in price over the last week, DOGE’s total supply in profit declined.
In fact, AMBCrypto’s look at IntoTheBlock’s data revealed that only 70% of DOGE investors were in profit.
The bearish price action also had a negative impact on DOGE’s social metrics. The meme coin’s social value declined slightly, reflecting less popularity in the crypto space.
Its weighted sentiment remained in the negative zone, meaning that bearish sentiment around DOGE was dominant in the market.
Source: Santiment
The chances of DOGE initiating a bull rally looked even thinner when we checked its market indicators. The MACD displayed a clear bearish upperhand in the market.
Its Relative Strength Index (RSI) also registered a downtick and was headed further below the neutral mark. These indicators suggested that investors might witness DOGE’s price fall further before it makes a comeback.
Source: TradingView
Realistic or not, here’s DOGE’s market cap in BTC’s terms
It was not only Dogecoin that displayed bearish performance. Shiba Inu [SHIB], the second-largest meme coin, also followed the trend.
As per CoinMarketCap, SHIB’s price dropped by more than 5% in the last 24 hours alone. At press time, it was trading at $0.00002349 with a market cap of over $13.8 billion.