Dogecoin has dropped 5% in the past 24 hours, with many investors rushing to lock in profits.
The sharp sell-off suggests weakening short-term confidence, as traders exit to secure gains from the recent rally.
Data shows a spike in Dogecoin’s realized profit/loss ratio — a clear sign of heightened profit-taking. This shift in sentiment, mostly from short-term holders, has applied strong downward pressure on the meme coin’s price.
Despite this, long-term holders remain unfazed. The decline in the Liveliness metric, which reflects their activity, indicates they are holding firm. These investors have often helped stabilize DOGE during past market pullbacks, and their ongoing support may still act as a buffer against deeper losses.
Dogecoin is currently trading at $0.233, below the resistance at $0.245. If the price slips below $0.220, it could slide further to test $0.198. However, reclaiming $0.245 as support would shift the momentum back in DOGE’s favor, potentially targeting $0.268 — but only if long-term holders continue to stay put and the selling pressure eases.
Alexander Stefanov
Reporter at Coindoo
Alex is an experienced financial journalist and cryptocurrency enthusiast. With over 8 years of experience covering the crypto, blockchain, and fintech industries, he is well-versed in the complex and ever-evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His approach allows him to break down complex ideas into accessible and in-depth content. Follow his publications to stay up to date with the most important trends and topics.
Source: https://coindoo.com/doge-pulls-back-after-rallying-classic-correction-or-warning-sign/