Nov 7, 2024
6thTrade
Dogecoin's Market Rally Stalls, Falls Back Under XRP as Holders Cash Out
Dogecoin enjoyed a brief moment in the spotlight on Wednesday, momentarily surpassing Ripple's XRP in market capitalization following a 25% price spike. The leading meme coin surged to $0.211 after the cryptocurrency market rallied in response to Donald Trump’s 2024 election victory, briefly securing the seventh spot in market cap rankings. But the surge was short-lived; profit-taking among investors soon drove DOGE back below XRP, with its price slipping to $0.192—a 9% drop in just 24 hours.
The rapid sell-off reveals the increasing exchange netflows for Dogecoin, an indicator of rising deposits on exchanges for potential selling. According to data from IntotheBlock, Dogecoin’s netflow reached 852.46 million DOGE in the past 24 hours, signaling that more investors are cashing in their gains. High exchange netflows often signify that holders are selling off, which can heighten downward price pressure as supply on the market rises faster than demand. $DOGE
Further, Dogecoin's current market sentiment remains subdued. With a weighted sentiment score of -0.16, social media chatter surrounding DOGE has leaned negative, reflecting cautious expectations among traders. A negative sentiment score, which considers the tone of social media discussions, typically signals that investors expect a decline.
Price Predictions and Key Support Levels
Currently trading at $0.192, DOGE is hovering just below the $0.193 support level it tested during its rally. With selling pressure still strong, the coin risks dipping to $0.172, a critical support point. If this level fails, Dogecoin could drop as low as $0.154, extending its downward trajectory.
However, if DOGE finds support at $0.172 and can rally, it may push back through the $0.193 resistance level. Such a move would position Dogecoin to aim for its year-to-date high of $0.228, renewing hope for a more sustained uptrend.
Disclaimer: The content of this article is for informational purposes only and does not constitute financial advice. Cryptocurrency investments are highly volatile and may lead to substantial financial loss. Always perform your own research and consult a qualified financial advisor before making any investment decisions. The opinions expressed are solely those of the author and do not represent the views of the publisher or its affiliates. Investing in cryptocurrencies involves inherent risks, and past performance is not a reliable indicator of future results. Please exercise caution.
