7 months ago
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Dogecoin could be heading toward an imminent sell-off that could tank its price as a significant tranche of coins is about to move into profit. In such a case, it would not be out of the ordinary to see a large number of investors sell off their holdings as they move to secure some profit.
10 Billion DOGE Headed For Profit
In an interesting twist, the Dogecoin price crossing $0.17 could be both good and bad for the price. This is because a large number of DOGE coins were bought between the $0.15 and $0.168 levels, meaning that a cross above $0.17 would put all of these coins in profit.
According to data from IntoTheBlock, there are approximately 10 billion DOGE coins that are sitting in this level waiting to move up into profit. At current prices, it means that more than $1.58 billion are waiting for the $0.17 price point to be reclaimed.
While a move above $0.17 would be positive for the meme coin, it will also put it at risk of a sell-off from these holders. Given that the Dogecoin price has been muted for the majority of 2023 before seeing some upside in March 2024, investor fatigue is expected, prompting some holders to take profit as soon as they see it.
However, there is also the fact that a move above $0.17 will not be a significant profit margin for a large number of investors. Hence, they might be more inclined to wait for higher prices before selling rather than barely breaking even on their investments.
What Happens To Dogecoin In The Event Of A Sell-Off?
Presently, the Dogecoin price is sitting 7% below the $0.17 price level, which still gives it some runway until it gets there. However, if a large number of these DOGE investors do decide to sell their coins, it could push the price of Dogecoin back down toward the $0.15 support.
Despite the threat of a sell-off, bullish sentiment continues to dominate the meme coin as multiple crypto analysts have predicted a major upside for DOGE’s price. Analyst Altcoin Sherpa believes that the Dogecoin price will do very well in 2024 and will outperform plenty of altcoins.
Another analyst, Ali Martinez, revealed that the meme coin has now entered the buy zone, making it a good choice for accumulation. According to Martinez, the DOGE price can rise another 700% from here to cross the $1 threshold and make a new all-time high.
Featured image from Coinpedia, chart from Tradingview.com
