Key Insights :
- The Dogecoin Fear and Greed Index was at 37 indicating investors were feeling fearful.
- Dogecoin price action was following the pattern that appeared between March and April.
- The Crowd Sentiment score was negative at -1.86 while the Smart Money Sentiment score was 0.50.
While the meme coin market faced the same fate as the broader crypto markets, Dogecoin news showed the potential for upside but was yet to be confirmed.
Dogecoin News on Fear and Greed Index
At the time of writing, the Dogecoin Fear and Greed Index was at 37 indicating investors were feeling fearful. A value below 50 normally suggested that investors had doubts about entering long positions.
Investors may get carried away by fear and make overly optimistic investments. However, it could mean it’s a good time to buy if the trend continued.
Usually, this sentiment appeared in the early part of a recovery or during stages where the market formed after a correction.
Additionally, a typical cycle in the psychology of the market suggested the appearance of a bear trap in the structure of Dogecoin.
This suggested that the price of Dogecoin declined when it seemed to break higher but magically reversed and climbed sharply.
The “Bear trap” meant that the dip might not suggest a further fall in prices. Perhaps, short-sellers were attracted too early, with the price later going up again.
If it is the case, it could bring about a recovery period inspired by new hope or FOMO. Yet, not holding onto this energy might result in mishaps and total defeat.
Since the risks were high, it was advisable to watch the follow-through for confirmation.
Dogecoin News on Price Prediction
Again, Dogecoin news showed movement was almost the same as what was seen in March–April.
Both patterns were double tops which were followed by a sharp fall and completed after it signaled the lowest point in that area.
Unlike the earlier trend, this time the steady rise could end with a top at $0.245 and after that, it coudl drop significantly.
There was a similar pattern as the one from $0.20 to $0.138. If history continued, Dogecoin could rally up from its latest $0.165 low as marked by the red star.
At the start of the fractal, a bounce coudl initiate a big rally. Repeated momentum may help DOGE climb past $0.20 and touch the $0.245 resistance.
If things remain favorable, move into the $0.28–$0.30 area which the red projection candles suggest. Should price fail to recover over $0.20, the rejection may drop it again to $0.165 and perhaps even $0.138.
Watching the $0.165 level matters, because if bullish continuation was to stay intact, this amount could hold.
Dogecoin Market Sentiment
Moreover, Dogecoin news reported two important sentiment measures. The Crowd Sentiment score was negative at -1.86 which meant that retail investors were leaning slightly away from buying the stock.
As a result, most public traders seemed cautious or not optimistic, probably due to recent events in the market.
When negative news for a stock is acted on by more advanced investors, this sometimes constitutes a bottom.
Instead, the Smart Money Sentiment score was 0.50. The reading showed that professional traders were slowly becoming more bullish on the market.
It was not a strong indication, but revealed that traders were beginning to plan for the market to go up again.
The fact that retail ideas and bigger investor actions were opposing each other hinted that although people tended to have pessimistic views now, those in the know might anticipate a rally coming soon.
If large investors kept buying and people started to buy Dogecoin again, a gradual rise in its price may happen.
Yet, uncertainty may make the price more open to decreasing further.