Dogecoin sell-off imminent? 10 billion DOGE on the verge of turning profitable
Dogecoin could be about to face a sell-off, which could cause its price to fall as a large portion of the tokens are about to turn profitable. In this case, it is not surprising that a large number of investors would sell their holdings in order to reap profits. 10 billion DOGE heading for profits Interestingly, a Dogecoin price breakout above $0.17 could be both a good and bad thing for the price. This is because a large number of DOGE tokens were purchased between the $0.15 and $0.168 levels, which means that a cross above $0.17 would turn all of these tokens into profits.
According to IntoTheBlock, there are about 10 billion DOGE coins sitting at this level waiting to rise for profits. At current prices, this means that more than $1.58 billion is waiting for the $0.17 price point to be reclaimed. While a price increase above $0.17 would be positive for Meme Coin, it would also expose it to the risk of a sell-off by these holders. Given that Dogecoin prices have been languishing for much of 2023, with some upside only seen in March 2024, it is expected that investor fatigue would set in, prompting some holders to take profits as soon as they see them.
However, there is also the fact that a breakout above $0.17 would not result in a significant profit margin for a large number of investors. As such, they may prefer to wait for higher prices before selling rather than just barely breaking even on their investment.
What would happen if Dogecoin were to sell off?
Currently, the price of Dogecoin is 7% below the $0.17 price level, which still gives it some runway until it reaches that level. However, if a large number of DOGE investors do decide to sell their tokens, it could push the price of Dogecoin back towards the $0.15 support level.
Despite the threat of a sell-off, multiple cryptocurrency analysts have predicted a significant rise in the price of DOGE, with bullish sentiment continuing to dominate the meme coin. Altcoin analyst Sherpa believes that Dogecoin’s price will perform well in 2024 and will outperform a large number of altcoins.
Another analyst, Ali Martinez, revealed that the meme coin has now entered the buy zone, making it a good choice for accumulation.Martinez said DOGE prices could rise another 700% from here, breaking through the $1 threshold and setting a new all-time high.
