Dogecoin (DOGE) Price Surges Amid ETF Buzz, $1.6B Sell-Off
Dogecoin ETF Hype Fuels Price Rally Despite $1.6 Billion Selling
Dogecoin (DOGE) has experienced a significant price surge recently, driven by growing anticipation surrounding a potential Dogecoin ETF launch. The meme coin has steadily climbed, but this rally coincides with substantial selling activity from various investors, including major holders.
Despite this profit-taking, the bullish trend has largely persisted, keeping Dogecoin in the spotlight.
Dogecoin Holders Take Profits
Data indicates a sharp increase in the amount of Dogecoin held on exchanges this month, suggesting investors are positioning to sell. Since early September, approximately 5.81 billion DOGE, valued at over $1.63 billion, have been moved to exchanges. This reflects increased caution among traders, even with the excitement surrounding a possible ETF approval.
The price rally, spurred by ETF optimism, has created a favorable environment for investors to secure gains. While this selling pressure hasn't yet reversed Dogecoin's upward trajectory, it raises concerns about the sustainability of the rally. Increased profit-taking could weaken the recent bullish momentum in the coming days.
The coin days destroyed (CDD) indicator signals an emerging risk for Dogecoin. For the first time in over a month, long-term holders have been moving their assets. Historically, such activity can suggest that influential holders are preparing to offload DOGE, often a bearish signal.
Previously, long-term holders provided stability by largely avoiding selling. Their recent activity highlights a potential weakness in the market. If these wallets begin liquidating their holdings, the resulting selling pressure could challenge Dogecoin's price gains and diminish confidence, regardless of the strong ETF-related optimism.
DOGE Price Hinges on ETF Launch
Dogecoin is currently trading around $0.282, representing a 17% increase over the past week. The meme coin is positioned just below the $0.287 resistance level and is attempting to maintain $0.273 as a crucial support level, which will likely define its short-term outlook.
If exchange inflows and continued profit-taking negatively impact momentum, DOGE could lose $0.273 as support. A breakdown below this level would expose the price to a potential decline toward $0.241, signaling a reversal of the recent rally and prompting caution among traders.
However, as Bloomberg ETF analyst Eric Balchunas noted, should the DOGE ETF launch proceed, market sentiment could quickly shift. In that scenario, Dogecoin could surge past $0.287 and test $0.300, potentially extending even higher and negating any bearish outlook linked to the current selling pressure.