The post Dogecoin holders debate profit-taking – Will it cause a retracement? appeared on BitcoinEthereumNews.com.

Is Dogecoin on the cusp of a bearish retracement after its latest rally? On-chain data showed sustained demand, although there are signs of a potential profit-taking build-up. Dogecoin [DOGE] went through the most bullish two weeks that have been observed in months. However, its impressive performance has pushed deep into overbought territory, raising questions. Should traders take short-term profits or wait for more potential upside? Dogecoin was trading at $0.145, at press time, after gaining 41.95% from its lowest price point in October so far. In other words, Dogecoin bulls have been quite busy putting up a firm assault against the bears. But, are Dogecoin bulls about to go for recess? The king of the memecoin was expected to face resistance above the $0.141 price range based on historic performance. The bulls pushed above that price point but have notably been facing more difficulty maintaining their momentum above it in the last three days. Source: TradingView DOGE’s RSI was already in overbought territory and also indicated a cooling down of the bullish momentum. Similarly, the MFI’s slight dip after being overbought suggests that some traders are starting to take profits. Despite the growing resistance, the bulls continued to show resilience, judging by the lack of a rush to take profits. This suggested that most Dogecoin holders were expecting prices to continue on a bullish trajectory. DOGE’s price action at press time was significantly lower than its YTD high. Will Dogecoin induce profit-taking? IntoTheBlock data pointed out that 80% of Dogecoin holders were in the money at current price levels. Only 16% were out of money, which meant there was a lot of demand near the bottom range. Large holder in-flows bounced from 274.5 million DOGE, on the 20th of October, to 1.08 billion DOGE on the 21st of October. This indicates…

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Filed under: News - @ October 23, 2024 8:17 am