Dogecoin Surges, Then Falls as Holders Cash Out Gains
Dogecoin briefly overtook XRP in market cap after a 25% surge, but selling pressure quickly reversed the gains, pushing DOGE back down.
Dogecoin (DOGE) recently saw a dramatic surge of 25%, briefly surpassing XRP in market capitalization. However, this rally was short-lived as selling pressure quickly took over, erasing much of DOGE’s gains and pushing it back below XRP. The surge came after Donald Trump’s victory in the 2024 U.S. elections, which sparked a wave of bullish activity across the crypto market.
The sudden rise in Dogecoin’s value allowed it to claim the seventh spot in market cap, but profit-taking among investors soon led to a pullback. As traders moved to cash in on the meme coin’s gains, XRP regained its position, and Dogecoin slipped down the ranks once more.
On-chain data highlights a sharp increase in Dogecoin’s exchange netflows, indicating that more DOGE is being deposited into exchanges, signaling an intent to sell. According to IntotheBlock, this uptick in exchange netflows suggests that selling pressure is building, which could further push down DOGE’s price.
The market sentiment around Dogecoin remains largely negative, with a weighted sentiment score below zero, reflecting a bearish mood among traders. Negative sentiment often signals that investors expect further declines, which could contribute to continued downward pressure on DOGE.
DOGE’s key support levels are now in focus. With weakened buying momentum, analysts caution that if the coin’s current support fails to hold, it may experience further declines, continuing its downtrend. Market watchers are keeping a close eye on these levels, as a breach could signal an extended period of bearish movement for Dogecoin.
