Profit-taking alert: Wealthy DOGE holders may halt further gains.
Retail interest, especially in futures, is pushing Dogecoin above $0.20.
Selling pressure may outweigh demand when Dogecoin's profit supply rises to 86 billion DOGE.
Bulls are seeking support above the 200-day exponential moving average to prolong Dogecoin's rise with positive technical indicators.
Retail interest is helping Dogecoin (DOGE) break above $0.2000 on Monday. The 44% rise in the top meme coin by market cap has increased the network profit supply, indicating a decline or slowdown if investors cash out.
The rise of Dogecoin is solid, but fundamental risks remain.
Dogecoin is now trading at $0.2060, above the key $0.20 mark. Glassnode estimates the meme coin's profit supply at around $86 billion due to its steady price growth.
More of its holders become profitable with supply in profits growing, increasing the likelihood of a contraction. Investors prefer to sell when profitable rather than at a loss.
May saw Dogecoin profits peak at 121 billion DOGE. This matches the price spike from the April low attributed to tariffs at $0.1302 to the May peak of $0.257.
The directional correction that followed this rise reached support around $0.1429 in June before the bulls took charge, pushing Dogecoin to its current level.
The balance on exchanges shows a significant increase in DOGE tokens on exchanges to 23.5 billion from 23.2 billion in mid-June.
Dogecoin is above $0.20 and the 200-day exponential moving average (EMA) at $0.207. Risk sentiment supports the rise, according to the Money Flow Index (MFI), which measures the DOGE funds entering and exiting.
The open interest in Dogecoin futures is $2.67 billion, up from $1.64 billion in June.
However, support around either the 200-day at $0.207 could lead to another breakout to $0.3000. If it falls below this level, the trend may reverse towards the June low of $0.1429.
