Dogecoin’s recent surge is attributed to the anticipation of a possible DOGE ETF launch. The meme coin has experienced steady growth, although this rally aligns with a significant wave of selling among investors, including major holders.
Despite this profit-taking, bullish sentiment has continued, keeping DOGE in the limelight.
Dogecoin Holders Sell
The amount of Dogecoin on exchanges has increased drastically this month, indicating that investors might be getting ready to sell. Since early September, nearly 5.81 billion DOGE, valued over $1.63 billion, have been transferred to exchanges. This trend demonstrates increasing caution among traders, despite the excitement surrounding ETF approval.
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The price rally driven by ETF enthusiasm has created an opportune moment for investors to realize gains. Although this selling pressure hasn’t yet impacted Dogecoin’s price trajectory, it raises questions about sustainability. If profit-taking accelerates, the recent bullish trend could falter in upcoming sessions.
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The coin days destroyed (CDD) indicator indicates a rising risk for Dogecoin. For the first time in over a month, long-term holders have moved their assets. Historically, such shifts imply that influential groups may be preparing to offload DOGE, often signaling a bearish trend.
Until now, long-term holders had contributed to market stability by refraining from significant selling. Their recent actions expose potential vulnerabilities in the market. Should these wallets begin liquidating, the ensuing pressure could jeopardize Dogecoin’s price gains and shake confidence, despite strong ETF-related optimism.
DOGE Price Needs ETF Launch
Currently, Dogecoin is trading at $0.282, marking a 17% increase over the past week. The meme coin is just beneath the $0.287 resistance and is trying to maintain $0.273 as a crucial support level, which could influence its near-term outlook.
If exchange inflows and profit-taking pressure diminish momentum, DOGE might lose $0.273 as support. A dip below this level could expose the price to decline towards $0.241, indicating a reversal of the recent rally and prompting caution among traders.
However, as Bloomberg ETF analyst Eric Balchunas highlighted, if the DOGE ETF launch happens today, market sentiment could shift dramatically. In this scenario, Dogecoin might surpass $0.287 and attempt to reach $0.300, potentially rising even further and countering any bearish narrative tied to existing selling pressures.
