Dogecoin (DOGE) plummets continuously, is doomsday crisis approaching? Is it time for investors to flee in panic?

After Dogecoin (DOGE) surged to a recent high of $0.48, it has struggled to maintain the momentum of its rise.

Given that the market has been in a state of significant volatility, Dogecoin has been trading within a consolidation range of $0.42 to $0.37.

As of today, the price of Dogecoin is $0.3832, showing a decline of 4.11% on the daily chart.

Most Dogecoin traders are bearish, a situation that may indicate an impending shift in market dynamics. As the price continues to hover within the consolidation range, the bulls are becoming increasingly anxious.

This shift in sentiment from bullish to bearish signifies that buyer strength has been exhausted, while sellers are also trapped and unable to take action.

With the sellers in control, the selling pressure is extremely strong, with supply far exceeding demand, causing prices to continue to decline.

The downward trend of Dogecoin is further corroborated by the relative strength index (RSI), which has shown a declining trend over the past 10 days.

Some investors are selling off their recently appreciated positions but are not averaging down on potential declines, which undoubtedly exacerbates the downward price trend.

The positive directional indicator (+DI) has been continuously declining, clearly showing that its upward momentum is gradually dissipating. Meanwhile, the ongoing strengthening of the downward trend means that purchasing activity is becoming increasingly rare, and bearish pressure continues to accumulate.

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