Dogecoin emerged as one of the top-performing assets in the crypto market last month, surpassing leading cryptocurrencies like Bitcoin. Despite its impressive surge of over 26% in May, recent on-chain data indicates that investors have yet to adopt a bullish outlook on DOGE. This raises questions about how the prevailing bearish sentiment might influence Dogecoin's price.

In a recent X post, prominent crypto analyst Ali Martinez highlighted the current bearish market sentiment surrounding Dogecoin, as revealed by the weighted sentiment metric. This metric considers both sentiment balance and social volume to gauge overall sentiment towards a cryptocurrency. Martinez noted that the last time Dogecoin's market sentiment was this bearish was in early February, just before it experienced a remarkable 200% price surge. Historical data suggests that investor fear often precedes significant price spikes, indicating the potential for Dogecoin's price to surge, possibly surpassing the $0.3 mark.

Additionally, recent on-chain data reveals significant accumulation of Dogecoin by whales, with purchases totaling 700 million tokens (equivalent to approximately $112 million) over the past three days. While such large acquisitions by major holders typically signal bullish sentiment, the market has yet to reflect any substantial impact from these purchases. As of now, Dogecoin's price remains around $0.159, reflecting a slight decline in the past day.