Profit-Taking Alert: Rich DOGE Holders May Stall Further Gains
Retail interest, especially in futures, pushes Dogecoin over $0.2000.
Sell-side pressure may outweigh demand when Dogecoin's profit supply rises to 86 billion DOGE.
Bulls seek support above the 200-day EMA to prolong Dogecoin's rise with positive technical indicators.
Retail interest helps Dogecoin (DOGE) breach over $0.2000 on Monday. The top meme currency by market capitalization's 44% spike has increased the network's profit supply, suggesting a downturn or slowdown if investors cash out.
Dogecoin's ascent is solid, but underlying dangers remain.
Dogecoin is now trading at $0.2060, over the key $0.2000 mark. Glassnode estimates the meme coin's profit supply at 86 billion because to its consistent price growth.
More holders become lucrative as Supply in Profit grows, increasing the likelihood of a downturn. Investors prefer to sell when profitable rather than when losing.
May saw Dogecoin earnings peak at 121 billion DOGE. This matched the price rise from April's tariff-triggered fall at $0.1302 to May's $0.2597 peak.
The trend correction that followed this rise reached support around $0.1429 in June before bulls took over, pushing Dogecoin to its present level.
Balance on Exchanges shows a substantial rise in DOGE tokens on exchanges to 23.5 billion from 23.2 billion in mid-June.
Dogecoin is above $0.2000 and the 200-day Exponential Moving Average (EMA), $0.2027. Risk-on mood supports the upswing, according to the Money Flow Index (MFI), which measures DOGE money entering and exiting.
Dogecoin's futures contracts' Open Interest (OI) is $2.67 billion, up from June's $1.64 billion.
However, support around the 200-day EMA at $0.2027 might lead to another breakthrough hitting $0.3000. If it falls below this level, the trend may reverse toward June's low of $0.1429.
