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Is DOGE at risk? Analyzing the $25M Dogecoin sell-off!

2min Read

After a significant sell-off of over 176 million Dogecoin, the price has bounced back. Discover how DOGE is holding strong.

Dogecoin sees over $25 million sell-off amid price surge

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  • Dogecoin experienced a 1.4% decline following a large sell-off but quickly bounced back with a 4% rise, trading around $0.148.
  • DOGE’s open interest surged to $940 million, indicating strong trader interest.

Dogecoin [DOGE] experienced a positive trend in the past week, breaking through key price points. However, as the price climbed to a notable high, a significant volume of DOGE was transferred to an exchange, indicating a potential sell-off.

Dogecoin sees sell-off

Data from Whale Alert revealed a large transfer of Dogecoin to the Binance exchange on 20th October. Over 176 million DOGE, valued at more than $25 million, was moved in what appeared to be a substantial sell-off.

The wallet involved in the transaction still holds over 10 million DOGE, valued at nearly $1.6 million. This transfer came after Dogecoin’s price saw an upward surge, leading to speculation that holders were cashing out after the price increase.

Dogecoin bounces back from sell-off

Despite the sell-off, Dogecoin has shown resilience. Price chart analysis revealed that selling pressure caused a brief dip in the last trading session. Trading volume spiked to approximately $333 million, confirming that trader sell-offs had temporarily dominated.

DOGE saw a 1.4% decline, trading at around $0.142 at one point.

Dogecoin price trend

Source: TradingView

However, as of this writing, Dogecoin has bounced back, regaining its momentum. The price has increased by over 4%, now trading at approximately $0.148. The Relative Strength Index (RSI) analysis shows that DOGE remains in the overbought zone, indicating that demand remains strong. 

Additionally, the $0.130 price level has now become the latest support area, a level last seen in June before the token quickly dipped below it in subsequent sessions.

More open interest, but warning signs flash

According to data from Glassnode, the recent sell-off was temporary, with open interest increasing significantly over the past few days. As of this writing, Dogecoin’s open interest stands at around $940 million, up from $760 million on 18th October, reflecting an addition of nearly $200 million in just two days.

Dogecoin price trend

Source: Glassnode

While this rise in open interest indicates renewed trader interest and a positive cash inflow, the current state of Dogecoin’s RSI suggests caution. 


 Is your portfolio green? Check out the Dogecoin Profit Calculator


With the RSI still indicating an overbought condition, there are signs that a price correction may be imminent.

Overall, Dogecoin remains in a strong position despite the recent sell-off, but traders should be aware of potential corrections in the coming days.

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Adewale is a full-time journalist at AMBCrypto. While he is increasingly fascinating by the world of blockchain and cryptocurrencies, Adewale holds a degree in International Relations. Besides working on insightful articles that touch upon the crypto-space's hottest issues, he finds joy in supporting Manchester United and Afrobeat music.
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