Dogecoin Price Faces Profit-Taking Risk-One Key Level Could Decide Its Next Move

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Ah, Dogecoin. The crypto world’s lovable underdog (pun intended). In case you’ve missed it, the meme coin has been on a bit of a tear lately, surging over 16% this past week. But, surprise! In the last 24 hours, it’s been playing it cool-sideways like your friend who says they’re “just vibing.”

So, what’s happening? Well, some on-chain signals and charts suggest that sellers may be licking their chops, ready to take their profits. Yes, it looks like we might be in for a short-term breather or a dip. Everything hinges on one crucial support level. Who knew a meme coin could be so… dramatic?

Profit-Taking Pressure Builds, Inflows Back It Up

Here’s a fun fact: about 84% of Dogecoin holders are currently in the green. This is basically the crypto equivalent of everyone at a party holding a winning lottery ticket. But, as history has shown, when too many people are in profit, some of them decide to take their winnings and run. It’s like that one guy who leaves the party early because, well, he’s already had enough fun.

And, just to make sure we’re not imagining things, the exchange netflow has gone from -$52 million on August 10 to +$2.7 million on August 11. That’s more Dogecoin heading to exchanges than a middle schooler running to the lunch line. Looks like the traders are ready to cash out.

For token TA and market updates: Want more of this delightful crypto commentary? Sign up for Editor Harsh Notariya’s Daily Crypto Newsletter here. Don’t worry, we won’t judge you for being addicted to market drama.

SOPR Hints At A Cooling-Off, Led By Profit-Takers

Enter the Spent Output Profit Ratio (SOPR), the fancy tool that tells us whether people are selling for a profit or just taking a loss like someone at a casino who thought they were good at blackjack. When SOPR is above 1.0, it’s basically a “Hey, I’m making money, let’s bail” signal.

On August 10, DOGE’s SOPR hit 1.045, a number eerily close to what we saw in late July, right before the price dropped. It’s like deja vu, but in crypto form. This means we might be on the brink of another cooldown. And no, the SOPR doesn’t do lunch breaks; it’s all about sell signals. 😏

Key Level On The Chart Could Decide What’s Next For Dogecoin Price

Okay, time for the real nitty-gritty. On the 4-hour chart, Dogecoin is hanging out at around $0.235, just below the dreaded falling trendline of a descending triangle. Sounds ominous, right? Well, that’s because it usually means a downward trend could be lurking. In layman’s terms: consolidation, not a total crash. For now, it’s the crypto version of waiting for your laundry to dry.

And guess what? Fibonacci levels-yes, those mathematical whiz kids-are here to save the day. These levels serve as key support points, and at $0.23, Dogecoin has already managed to break past a few of them. If the price dips below $0.235, here’s what you should watch for:

  • Support to watch: $0.22 – This level has been a trusty friend in the past. If it holds, buyers might swoop in like knights in shining armor.
  • If it breaks, the price could slide lower, like your hopes and dreams after a bad date.
  • Upside trigger: Clearing $0.24-$0.246 would break the triangle and give bulls another shot at $0.25+. We’re talking a real comeback story here, folks.

To sum it up: Breaking through $0.24 would totally invalidate the bearish triangle and keep the bullish train rolling. Until then, $0.22 is the ultimate line in the sand-let’s hope it doesn’t get wiped out by a rogue wave of selling.

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2025-08-12 01:46