- Short-term holders trigger correction by locking in gains.
- DOGE trades at $0.234, below key resistance at $0.245.
- Price could test $0.198 if $0.220 support fails.
Dogecoin has shed 15% of its value after reaching a six-month high earlier this month, as a wave of profit-taking among short-term holders triggered a reversal in the memecoin’s recent rally.
The downturn reflects a broader pattern of sell-offs across the cryptocurrency market, where traders are taking gains off the table amid uncertain macroeconomic signals and resistance at key price levels.
At the time of writing, Dogecoin is trading at $0.234, down from recent highs and sitting below the key resistance level of $0.245.
The pullback marks a significant change in sentiment after a period of renewed optimism.
Investor behaviour signals short-term weakness
The realised profit/loss ratio for Dogecoin surged this week, reaching its highest level in six months. This metric tracks the profit or loss recorded by investors at the time of selling.
A sharp rise in this indicator suggests a large number of holders are exiting positions in profit, indicating that confidence in further gains is weakening.
This wave of profit-taking has mostly come from short-term investors, who contributed heavily to DOGE’s recent price correction.
The decision to lock in gains at current levels has put downward pressure on the coin’s price action, suggesting a reluctance to hold through potential near-term volatility.
Market participants are closely watching the $0.220 support level.
If DOGE drops below this zone, it could fall further to around $0.198—a key area last seen in earlier trading cycles.
Long-term holders remain steady amid volatility
Despite the short-term selling, Dogecoin’s long-term outlook may not be entirely compromised.
One key indicator, Liveliness—which measures the activity of long-term holders (LTHs)—continues to decline.
This trend suggests that LTHs are not moving their DOGE, implying they are not joining the sell-off.
This reluctance to liquidate positions has previously served as a stabilising force for Dogecoin during periods of intense market activity.
The declining Liveliness could act as a cushion, slowing the pace of the current correction and potentially preventing a full breakdown in price.
Market analysts often view the behaviour of LTHs as a bellwether for a coin’s resilience.
Their current stance suggests that Dogecoin may still have underlying strength, provided the support levels hold and broader sentiment doesn’t worsen further.
Critical resistance could define next move
Dogecoin’s short-term trajectory will likely hinge on whether it can reclaim the $0.245 resistance level.
A breakout above this threshold could invalidate the current bearish setup and open the door to a recovery towards $0.268.
On the other hand, continued profit-taking without fresh buying momentum could see DOGE extend its losses.
If the $0.220 support gives way, the market could quickly test lower support at $0.198.
As it stands, Dogecoin’s future price action will depend on whether long-term holders can provide enough support to offset the current selling pressure from short-term investors.
The post DOGE slips to $0.234 after 6-month high appeared first on CoinJournal.
