Dogecoin (DOGE) Price Breakout Could Be Impeded by Investors

Dogecoin (DOGE) is currently trading within a bullish pattern; however, confirmation requires bullish cues to validate it. Investor sentiment and behavior currently hinder this validation.

Investor Sentiment Dampens Outlook

Dogecoin's price may decline further as the distribution of its supply shifts. Mid- and long-term holders are transitioning to short-term holders, raising concerns about price stability. In the past month, short-term DOGE holdings have increased significantly, indicating increased volatility potential.

Short-term holders typically sell their assets within a month, exacerbating potential bearish conditions. Additionally, investor sentiment has remained negative for nearly three months, reflecting caution and pessimism, further reducing the likelihood of a DOGE price recovery.

Price Prediction: Breaking the Pattern

Dogecoin's price is forming a descending wedge at $0.124, typically indicating a potential upward breakout. To confirm this pattern, DOGE must break through the resistance at $0.128, which it has faced difficulties with in the past.

While the pattern suggests a potential rally to $0.300, this would require a breakout. The lack of bullish sentiment from investors may delay this breakout, resulting in a failed breach of the upper trend line or consolidation between $0.128 and $0.116.

If bearishness intensifies, Dogecoin's price could drop below $0.105, invalidating the bullish thesis and falling wedge pattern.