Dogecoin up 26% in October, now facing sell pressure
Key Takeaways
- Dogecoin (DOGE) saw a 26% increase in October.
- Many traders may now be taking profits, which could lead to a price drop.
- Dogecoin whale activity has significantly decreased, indicating uncertainty.
- A continued downtrend could push DOGE into a liquidation zone.
Dogecoin Sees Strong Surge in October
Dogecoin (DOGE) experienced a remarkable price increase of 26% in October, reaching a four-month high of $0.149 USD. However, the price soon dropped slightly to $0.137 USD. One possible reason for this decline could be traders increasingly taking profits.
Profit-Taking Begins
Following the strong price surge, Dogecoin saw a sudden increase in wallets that were in profit. According to IntoTheBlock data, 78% of DOGE holders, which translates to approximately 5 million addresses, were in profit, while 18% were at a loss. However, the number of active addresses in profit decreased by 11% — from 10,890 to 8,130. At the same time, the number of active wallets in loss increased by about 2%. This development suggests that many traders have started to realize their profits, which may have contributed to the slowdown in Dogecoin’s upward trend.
Increasing DOGE Inflows to Exchanges
Looking at inflow data, there was a significant rise in DOGE deposits to crypto exchanges. These inflows reached 372 million coins, representing an increase of around 38% compared to the previous day. Such inflows often indicate that traders are ready to sell their holdings, which could further pressure the price.
Decline in Whale Activity
The activity of so-called “whales” — large DOGE holders — has significantly decreased in recent days. After an initial phase of accumulation, these large addresses seem to be acting more cautiously due to uncertainties following the price increase. Over the past six days, the volume of large transactions over $100,000 USD dropped from 17 billion to 9 billion DOGE. Since whales control a large portion of the Dogecoin supply, their inactivity could reduce volatility and lead the price into a consolidation phase.
Risk of Liquidation
A look at Dogecoin’s liquidation heatmap shows a “hot” liquidation zone just below the current price level, between $0.135 and $0.136 USD. Such zones often act like a magnet and could pull the price further down. If the downtrend continues and DOGE falls into this zone, it could trigger additional selling pressure as traders attempt to close their positions.
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Our Assessment
Dogecoin’s strong surge in October has prompted many traders to realize their profits, putting downward pressure on the price. The decreasing whale activity and increasing inflows to exchanges suggest that a consolidation or even a further decline could occur in the short term. Particularly, the liquidation zone below the current price level could weigh on DOGE in the coming days. Traders should closely monitor developments and adjust their strategies accordingly.
| Symbol | DOGE |
| Coin type | Alt Coin |
| Transaction Speed | Medium |
| Pros |
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| Cons |
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| Price | $0.33 |
| 24h % | 6.57 % |
| 7d % | -18.31 % |
| 30d % | -15.42 % |
| 60d % | 132.19 % |
| 1y % | 256.65 % |
| Market Cap | $48,078,269,379.00 |
| Official Links | Website | Source Code |
| Socials | Reddit | X |
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