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Dogecoin has surged in recent days, fueled by anticipation of a potential $DOGE ETF launch. The meme coin has climbed steadily, but the rally has coincided with a wave of heavy selling from investors, including large holders.
Despite this profit-taking, bullish momentum has persisted, leaving $DOGE in the spotlight.
Dogecoin Holders Sell
The balance of Dogecoin on exchanges has spiked sharply this month, suggesting investors are preparing to sell. Since early September, nearly 5.81 billion $DOGE, worth more than $1.63 billion, have been moved to exchanges. This reflects growing caution among traders despite excitement around an ETF approval.
The price rally fueled by ETF optimism has created a favorable opportunity for investors to secure gains. While this selling pressure has not yet derailed Dogecoin’s price trajectory, it raises concerns about sustainability. If profit-taking accelerates, the recent bullish momentum could weaken in the coming sessions.
The coin days destroyed (CDD) indicator points to an emerging risk for Dogecoin. For the first time in over a month, long-term holders have shifted their assets. Historically, such activity suggests that influential cohorts may be preparing to offload $DOGE, often a bearish signal.
Up until this point, long-term holders had provided stability by avoiding large-scale selling. Their recent movement highlights potential vulnerability in the market. If these wallets begin liquidating, the resulting pressure could challenge Dogecoin’s price gains and undermine confidence, despite strong ETF-related optimism.
$DOGE Price Needs ETF Launch
Dogecoin is currently trading at $0.282, up 17% over the past week. The meme coin sits just below the $0.287 resistance and is attempting to hold $0.273 as a key support level, which could define its short-term outlook.
If exchange inflows and profit-taking weigh on momentum, $DOGE could lose $0.273 as support. A breakdown would expose the price to a decline toward $0.241, marking a reversal from the recent rally and signaling caution for traders.
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However, should the $DOGE ETF launch proceed today, as Bloomberg ETF analyst Eric Balchunas noted, market sentiment could flip. In this case, Dogecoin may surge past $0.287 and test $0.300, potentially extending higher and invalidating any bearish thesis tied to current selling pressure.
The post Over $1.6 Billion $DOGE Sold This Month, But Dogecoin Price Continues Rally, Here’s Why appeared first on BeInCrypto.