The crypto market has been showing signs of strength lately, and Dogecoin hasn’t been left out. The meme coin has jumped more than 16% in the past week, but over the last day, it’s been moving sideways.
Some on-chain and chart signals suggest sellers could be gearing up to take profits, leading to a short-term pause or pullback. Whether DOGE can keep climbing or start slipping could all come down to one critical support level.
Profit-Taking Pressure Builds, Inflows Back It Up
The percentage of addresses in profit for DOGE recently touched about 84%; the same level seen on July 27 before the price dropped from $0.24 to $0.19 in just a week. Historically, when too many holders are in profit, some tend to cash out.
Backing this up, exchange spot netflow has flipped from –$52 million on August 10 to +$2.7 million on August 11. More DOGE is moving into exchanges, often a sign that traders are preparing to sell.
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SOPR Hints At A Cooling-Off, Led By Profit-Takers
The Spent Output Profit Ratio (SOPR) shows whether coins are being sold at a profit or loss. A reading above 1.0 means holders are taking profits.
On August 10, DOGE’s SOPR climbed to 1.045, close to the levels seen in late July, which was followed by quick pullbacks. It’s a sign the market could be near another short-term cooling-off point. Plus, an increasing SOPR aligns with the sell-based narrative.
Key Level On The Chart Could Decide What’s Next For Dogecoin Price
On the 4-hour chart, the DOGE price is hovering near $0.235, just under the falling trendline of a descending triangle pattern. This setup often leans bearish in shorter time frames, hinting at consolidation and not a breakdown.
The Fibonacci levels act as the base of the descending triangle, showing up as key support levels. Dogecoin price has broken past several levels aligned with the $0.23 mark. If $0.235 breaks, traders might have to watch for the following hints:
- Support to watch: $0.22 — This level has held strong before. If it holds again, buyers may step in.
- If it breaks, the Dogecoin price could slip lower.
- Upside trigger: Clearing $0.24–$0.246 would break the triangle and give bulls another shot at $0.25+.
Breaking past $0.24 would invalidate the bearish triangle and keep the bullish momentum ongoing. For now, $0.22 is the line in the sand that could decide if DOGE keeps rallying or sees more red candles.
The post Dogecoin Price Faces Profit-Taking Risk—One Key Level Could Decide Its Next Move appeared first on BeInCrypto.
