In April, Dogecoin holders have been withdrawing their funds from spot markets, leading to increased selling pressure on the popular meme coin.

The decline in investor confidence is evident as there is limited new capital entering DOGE, adding downward pressure to the altcoin.

There has been a consistent pattern of net outflows totaling over $120 million from DOGE's spot market since the beginning of April, while net inflows have remained minimal at less than $5 million according to Coinglass data.

When an asset experiences spot outflows, it signifies that more coins are being sold or withdrawn than bought or deposited, indicating a lack of investor confidence in DOGE amidst bearish market conditions.

The ongoing outflows from DOGE over the past couple of weeks suggest a dwindling demand for the meme coin, potentially leading to a stagnant price or a further decline.

On a technical note, DOGE's Relative Strength Index (RSI) has been on a downward trend on the daily chart, confirming the bearish sentiment with the indicator below the neutral line at 47.61.

A declining RSI below the center line signifies a strengthening bearish momentum, indicating that selling pressure on DOGE is outweighing buying interest, hinting at a potential price drop.

Given the heightened volatility in the crypto market due to external factors like trade wars and DOGE's struggle to attract fresh investments, the meme coin may test new lows soon, possibly revisiting its yearly low of $0.12 if selling pressure escalates.

However, a resurgence in demand for DOGE could alter this bearish outlook, potentially propelling its price above $0.17 and towards $0.20.