Dogecoin may be on the verge of a massive sell-off that would wipe away its value since a sizable portion of its coins are poised to turn a profit. It wouldn't be unusual in such a situation to witness a significant number of investors liquidate their assets in an attempt to make a profit.
10 Billion DOGE Is Expected to Make Money
In an intriguing turn of events, the price of Dogecoin crossing $0.17 may have both positive and negative effects. This is due to the fact that many DOGE coins were purchased between $0.15 and $0.168, suggesting that all of these coins would profit from a cross above $0.17.
About 10 billion DOGE coins are reportedly resting in this stage, ready to advance into profit, according to data from IntoTheBlock. More than $1.58 billion is waiting to be reclaimed at the $0.17 pricing threshold at current rates.
The meme currency would benefit from a climb over $0.17, but it would also be vulnerable to a sell-off by these holders. It is believed that investor tiredness would lead some holders to take advantage of the opportunity to profit as soon as they see it, given as Dogecoin's price was suppressed for most of 2023 until experiencing some upside in March 2024.
The fact that a move above $0.17 won't represent a sizable profit margin for many investors, meanwhile, is another factor. Because of this, they could be more likely to hold off on selling until prices have increased rather than selling just to break even.
What Takes Place With Dogecoin If There Is A Sell-Off?
Dogecoin is now trading at a discount to $0.17 by 7%, meaning it has some room to rise until it reaches that level. If a significant portion of these DOGE investors do choose to sell their coins, Dogecoin's price may drop once more, possibly back to the $0.15 level.
Bullish mood is still prevalent in the meme coin despite the possibility of a sell-off, as several cryptocurrency analysts have projected a significant increase in DOGE's price. Analyst Altcoin Sherpa predicts that in 2024, Dogecoin's price will rise significantly and surpass that of many other cryptocurrencies.
The meme coin has now moved into the buy zone, according to another analyst, Ali Martinez, making it a wise investment for accumulation. Martinez predicts that the price of DOGE will increase by an additional 700% from this point on to surpass $1 and reach a new all-time high.
April 2024, Cryptoniteuae