The sell-off of DOGE is intensifying.
Since the beginning of April, DOGE has recorded a steady net outflow of funds from the market — over $120 million. During the same period, net inflows amount to less than $5 million, according to Coinglass.
This indicates that DOGE investors are losing confidence and prefer to take profits amid deteriorating market conditions.
A steady outflow of funds from the meme coin indicates a lack of new demand. If the trend continues, the price of DOGE may remain sideways or begin to decline.
Additionally, the relative strength index (RSI) for DOGE continues to decline on the daily chart, confirming the bearish scenario.
At the time of publication, the indicator is below the neutral mark of 50 and stands at 47.61.
When the RSI drops below the central line, it indicates an increase in bearish momentum. This means that the selling pressure of DOGE begins to outweigh buying interest, which could lead to a price decline.
DOGE risks retesting annual lows.
Due to the high volatility of the crypto market related to Donald Trump's trade wars and DOGE's difficulties in attracting new investments, the meme coin may soon update its lows. If selling pressure intensifies, the price of DOGE may return to the annual low of $0.12.
On the other hand, if demand for the meme coin increases, the negative forecast may be reversed. In this case, the price of DOGE would have a chance to break the $0.17 mark and reach $0.20.
