Dogecoin: Sell pressure to cause problems for DOGE prices?

• Dogecoin’s price rose about 14% in the last 24 hours.
• Despite rising prices, traders continued to remain bearish.

Dogecoin [DOGE]  recently experienced a significant upswing in its price, leaving investors and enthusiasts curious about the potential implications for its holders.

Taking out the competition

Due to this surge in price, the memecoin’s market cap increased as well. This resulted in DOGE surpassing other major crypto currencies such as AVAX, TRON and DOT. At the time of writing, the market cap for DOGE was around $25.714 billion.

Source: Coinmarketcap

Coming to the price, it was seen that DOGE was trading at $0.1849, reflecting a noteworthy 14% surge in the last 24 hours.

The Relative Strength Index (RSI) for Dogecoin was at 67.16. This RSI value, indicating the overbought condition, suggests that while the price is on an upward trajectory, it may also be susceptible to a potential correction.

Examining the Chaikin Money Flow (CMF) for DOGE, which currently stood at 0.19, presented a mixed picture. A positive CMF signified strong buying pressure, but an increase in the indicator could also indicate potential profit-taking, signaling a sell-off.

Source: Trading View

Looking at the data

The MVRV (Market Value to Realized Value) ratio for DOGE also witnessed growth due to the recent surge in its price.

A higher MVRV ratio indicated that holders were profitable, potentially tempting them to sell. This profit-taking behavior could introduce selling pressure, leading to a corrective phase.

Social volume, often linked with price movements, also witnessed an uptick for DOGE. This positive correlation between social activity and price might suggest that the growing interest and discussions around Dogecoin are contributing to its upward momentum.

Weighted sentiment, another crucial metric, has shown an increase, indicating that positive comments are currently outweighing negative ones. This surge in positive sentiment could further contribute to DOGE’s positive momentum in the market.

Read Dogecoin’s [DOGE] Price Prediction 2024-2025

Source: SantimentOn the flip side, the rise in the percentage of short positions against DOGE reveals a cautious sentiment among traders. The increase in short positions indicates a bearish outlook, and investors should be mindful of the potential impact this could have on the coin’s price.

As memecoins are extremely volatile in nature, traders may need to exercise caution before making any trade.

Source: Coinglass