Dogecoin Risks Losing Up to 15% as Investors Exit En masse
Date: 2025-08-20 Author: Henry Casey Categories: CRYPTO PAYMENTS
The price of Dogecoin has fallen by about 2% over the past 24 hours, reversing the growth of the previous seven days. Analysis of on-chain data shows that the pressure on the coin may increase, and short-term forecasts remain bearish.
The main reason for the decline was an active sell-off among key groups of DOGE holders, according to HODL Waves data. Thus, the share of investors holding coins for 6 to 12 months decreased from 15.46% to 14.705%, and holders with a period of 1-3 months - from 8.0% to 4.614%. This suggests that it is not only newcomers who are selling, but also medium-term investors and sometimes long-term holders, which signals a decrease in confidence in the short-term price growth.
Particularly worrying is the fact that the sell-off is not happening after the price rise, but during the fall. This means that investors are leaving with minimal profits or even losses, which may indicate an expectation of a deeper decline in the price.
Currently, almost 77% of Dogecoin's circulating supply is in profit. Historically, when this figure exceeded 73%, price corrections followed. The last time this level was on July 30, when DOGE was trading around $0.22 and soon fell to $0.19. Now, the supply in profit is high again, which creates a risk of a repeat decline: the market usually waits for this percentage to fall before buyers return.
Technically, Dogecoin is near the critical support at $0.21. A break of this level will strengthen the bearish trend, and the next support zone is $0.20. A broader target for the bearish scenario is $0.18, which means a decline of almost 15% from current prices. The Bull and Bear Power (BBP) indicator is already showing negative values, indicating that selling pressure is exceeding buying activity.
If Dogecoin manages to rise above $0.23, the situation will change in a positive direction. Otherwise, investors may face further declines and an increase in bearish sentiment in the market.
Active market participants can monitor the dynamics of HODL Waves and the level of supply in profit to understand the current sentiment of investors and predict the further movement of the DOGE price.
This period shows that Dogecoin remains a volatile asset, and short-term movements are highly dependent on the sentiment of holders and their willingness to take profits.
Taking all factors into account, investors should be cautious and closely monitor key support levels before making decisions on buying or selling.
