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Dogecoin sell pressure has surged dramatically this week, with over 5 billion DOGE tokens flooding major exchanges, igniting serious concerns about a looming price correction.
The meme coin, which recently touched multi-month highs, is now facing a crucial test as investor sentiment rapidly flips from bullish to risk-off.
The sudden spike in Dogecoin sell pressure is triggering alarms across the crypto market, as traders rush to secure profits following a robust rally.
On-chain metrics now paint a bearish picture, suggesting that the meme coin’s upward momentum may be running out of steam.
Dogecoin sell pressure has been visibly accelerating, with data from on-chain analytics firm Glassnode revealing that DOGE’s Exchange Net Position soared to a 3-year high of 5 billion tokens on Sunday.
This key metric highlights the net movement of DOGE into centralized exchanges and is typically used to assess potential selling activity.
“When we see such a substantial rise in exchange inflows, it signals investors are preparing to liquidate holdings,” said James Butterfill, Head of Research at CoinShares.
“The trend strongly suggests traders are taking advantage of recent gains, which could trigger additional downside pressure.”
DOGE holders are not just shifting coins for storage — they are actively exiting positions. This migration of tokens from cold wallets into trading platforms underscores the urgency with which some traders are seeking to lock in profits.
Another clear indicator of the growing Dogecoin sell pressure is its Realized Profit/Loss (P/L) Ratio, which has spiked to 15.78, according to Glassnode.
This ratio compares the acquisition cost of tokens to their selling price and is a leading signal of market sentiment.
“A P/L ratio this high means DOGE holders are realizing significant gains — more than $15 in profit for every $1 in losses,” explained Harsh Notariya, Editor of the Daily Crypto Newsletter. “It’s a powerful incentive to sell, especially as fear of a correction increases.”
With DOGE’s average profit realization so high, market participants are increasingly opting to secure earnings rather than risk potential downside in the event of a broader market cooldown.
Dogecoin sell pressure is hitting a boiling point as panic selling grips the market. With Dogecoin sell pressure mounting across centralized exchanges, traders are scrambling to exit positions.
Analysts now warn that Dogecoin sell pressure could spark a cascade of liquidations. As Dogecoin sell pressure dominates sentiment, confidence in a recovery dips. Dogecoin sell pressure may worsen fast.
Although Dogecoin saw a modest 2% price bump in the last 24 hours, largely driven by a broader crypto market uptick, analysts caution this rebound might be short-lived.
The simultaneous rise in exchange inflows suggests the rally is being met with heightened sell pressure.
“Price surges combined with rising inflows usually don’t end well,” warned Ali Martinez, a crypto market analyst at FXStreet. “It implies the market is offloading into strength — a textbook sign of distribution.”
Should the Dogecoin sell pressure continue unabated, the meme coin could slide below its $0.23 support, possibly retreating toward the $0.17 level, especially if trading volumes decline and sentiment weakens further.
Despite the current bearish outlook, not all is lost for Dogecoin. If buying pressure picks up and key players — such as institutional investors or whales — start accumulating at lower levels, DOGE could mount a comeback.
A reversal could drive the price toward the $0.28 resistance zone in the near term.
“The key to breaking out of this cycle is a shift in net exchange outflows and a decline in profit-taking,” noted Butterfill. “Until then, the path of least resistance is down.”
With over 5 billion DOGE entering exchanges and realized profits nearing historic highs, Dogecoin sell pressure is now the dominant market force.
Whether this marks the beginning of a deeper correction or merely a brief pause in the meme coin’s rally will depend on upcoming market behavior — particularly whale movements and macro crypto trends.
For now, traders would be wise to monitor exchange flows and sentiment metrics. As history has shown, Dogecoin’s price can pivot sharply based on community dynamics — but in this moment, the bears are taking the lead.
Over 5 billion DOGE have been transferred to exchanges in the past week.
Glassnode’s Exchange Net Position metric hits a 3-year high.
Realized P/L Ratio at 15.78 signals heavy profit-taking.
DOGE risks dropping below $0.23 if sell pressure persists.
Potential rebound possible if demand strengthens and whales re-enter.
