Dogecoin Price Prediction: Profit-taking in DOGE hits monthly high, raising the risk of a crash

FXStreet
Updated
Mitrade
coverImg
Source: DepositPhotos

  • Dogecoin price hovers below its key weekly level of $0.18, signaling waning bullish momentum.

  • On-chain data show that DOGE’s profit-taking activity has reached a month-high, signaling growing selling pressure.

  • Santiment data indicate that dormant DOGE wallets are becoming active; if tokens are sent to exchanges, selling pressure could increase.

Dogecoin (DOGE) hovers below its key weekly level of $0.18 at the time of writing on Monday, signaling a waning of bullish momentum. DOGE is flashing early warning signs, as on-chain data indicates rising selling pressure among holders, with profit-taking having surged to a monthly high and dormant wallet activity rising.

Dogecoin holders' booking profits hit monthly high

Santiments’ Network Realized Profit/Loss (NPL) metric indicates that DOGE holders are booking some profits.

As shown in the graph below, the NPL experienced a significant spike on Saturday, marking the highest profit booking activity since early May. The spike indicates that holders are, on average, selling their bags at a significant profit and increasing the selling pressure.

Dogecoin NPL chart. Source: Santiment

Dogecoin NPL chart. Source: Santiment

Looking at Santiment’s Age Consumed index also raises bearish signs. The spikes in this index suggest dormant tokens (tokens stored in wallets for a long time) are in motion, and it can be used to spot short-term local tops or bottoms. As in the case of the dog-themed meme coin, history shows that the spikes were followed by a decline in DOGE's price as holders moved their tokens from wallets to exchanges, thereby increasing selling pressure.

The most recent uptick on Saturday was the highest spike since early May, which forecasted that DOGE was ready for a downtrend.

DOGE Age Consumed chart. Source: Santiment

DOGE Age Consumed chart. Source: Santiment

Dogecoin Price Prediction: DOGE is poised for a downleg as it closes below key support

Dogecoin price faced rejection from its 50-day Exponential Moving Average (EMA) at $0.195 on Wednesday and declined by more than 9%, closing below its weekly support level at $0.181 the following day. DOGE continued its decline by nearly 3% until Sunday. At the time of writing on Monday, it hovers at around $0.176.

If DOGE continues its correction, it could extend the decline toward its April 22 low of $0.157.

The Relative Strength Index (RSI) on the daily chart reads 38, below its neutral level of 50, indicating bearish momentum. The Moving Average Convergence Divergence (MACD) indicator on the daily chart also displayed a bearish crossover, giving sell signals and further supporting the bearish thesis.

DOGE/USDT daily chart

DOGE/USDT daily chart

However, if DOGE recovers and closes above its weekly resistance at $0.181, it could extend the rally toward its next resistance, its 50-day EMA at $0.195.

* The content presented above, whether from a third party or not, is considered as general advice only.  This article should not be construed as containing investment advice, investment recommendations, an offer of or solicitation for any transactions in financial instruments.

goTop
quote
Do you find this article useful?
Related Articles
placeholder
Stellar Price Forecast: XLM eyes triangle breakout rally amid PayPal’s stablecoin integration buzzStellar (XLM) ticks higher by nearly 1% at press time on Friday, adding minor gains to the 5% surge from Sunday. Stellar nears the resistance trendline of a descending triangle pattern after bouncing off its support floor on Wednesday, accounting for a near 12% surge. 
Author  FXStreet
9 hours ago
Stellar (XLM) ticks higher by nearly 1% at press time on Friday, adding minor gains to the 5% surge from Sunday. Stellar nears the resistance trendline of a descending triangle pattern after bouncing off its support floor on Wednesday, accounting for a near 12% surge. 
placeholder
Cardano (ADA) Turns Upward — Signs of a Recovery EmergeCardano price started a fresh increase from the $0.5650 zone. ADA is now consolidating and might attempt a clear move above the $0.5925 zone. ADA price started a fresh increase from the $0.5650
Author  NewsBTC
9 hours ago
Cardano price started a fresh increase from the $0.5650 zone. ADA is now consolidating and might attempt a clear move above the $0.5925 zone. ADA price started a fresh increase from the $0.5650
placeholder
Dog-based meme coins DOGE and SHIB hint at a rally as bullish bets and holders’ accumulation increaseDog-themed meme coins Dogecoin (DOGE) and Shiba Inu (SHIB) are showing signs of a potential rally as bullish momentum builds across the market. DOGE has rebounded after retesting its key level, while SHIB hovers closer to its critical resistance.
Author  FXStreet
9 hours ago
Dog-themed meme coins Dogecoin (DOGE) and Shiba Inu (SHIB) are showing signs of a potential rally as bullish momentum builds across the market. DOGE has rebounded after retesting its key level, while SHIB hovers closer to its critical resistance.
placeholder
Stablecoin market cap unlikely to hit $2 trillion by 2028: JPMorganIn a note to investors on Thursday, JPMorgan Chase estimated that the stablecoin market could reach $500 billion by 2028, a modest prediction compared to popular forecasts of a $1-$2 trillion market capitalization increase over the same period.
Author  FXStreet
7 Month 04 Day Fri
In a note to investors on Thursday, JPMorgan Chase estimated that the stablecoin market could reach $500 billion by 2028, a modest prediction compared to popular forecasts of a $1-$2 trillion market capitalization increase over the same period.
placeholder
Solana (SOL) Cools After Recovery — Resistance Proving Difficult to CrackSolana started a recovery wave above the $150 zone. SOL price is now correcting gains and might struggle to rise above the $155 resistance. SOL price started a fresh decline after it failed to clear
Author  NewsBTC
7 Month 04 Day Fri
Solana started a recovery wave above the $150 zone. SOL price is now correcting gains and might struggle to rise above the $155 resistance. SOL price started a fresh decline after it failed to clear
Real-time Quote