Is this price is a good profit taking level for Dogecoin?
DOGE’s rally has slowed down and the altcoin was trading at the $0.53 level. This is consistent with Elevate Trading’s founder @NebraskanGooner’s prediction. Before last weekend, this influencer suggested that above $0.7 is a good profit-taking level for DOGE. Several traders on crypto twitter spewed hate on the tweet, however looking at DOGE’s price chart, it was a fair warning. Social sentiment plays a critical role in altcoins’ price trend, and in the case of DOGE, it is now evident.
Despite a fair warning, the social volume has dropped and so has the price. The price is currently at the $0.53 level. The trade volume is up by nearly 11% over the past 24 hours. Due to large concentration by HODLers, this increase in trade volume could be linked with increased selling pressure.
DOGE’s price goes in one direction and the altcoin has responded to Bitcoin’s price action. When the price went above the $0.7 level, it was a profit taking opportunity for DOGE. Since the concentration by large HODLers is still at nearly the same level, there hasn’t been a cascading sell-off.
This is a positive sign for DOGE’s price and bullish for traders in the short-term. Based on predictions from influencers on crypto twitter, selling a portion of their holdings at the current price level is ideal. 90% of HODLers are profitable at the current price level.
The remaining 10% are not currently profitable; this number includes the traders that bought DOGE during the big move. The current volatility in the altcoin market is largely due to DOGE’s price action. Based on social volume, Dogecoin ranks first, however, in terms of volatility, it ranks 5 based on data from lunarcrush.
The social volume has increased since the number of traders subscribed to Telegram Channels for DOGE has increased by over 25% in the past week. Across exchanges the demand is high, and this looks bullish for DOGE, however based on inflow of investment in DOGE, the sentiment is neutral. DOGE traders’ getting warned on twitter are more likely to follow through going forward, looking at how the metrics coincide with the predictions shared by influencers and analysts on crypto Twitter.