#TopContentChallenge#  Dogecoin Under Selling Pressure: 5 Billion Coins Hit Exchanges

DOGE USD has been experiencing a double-digit price decline over the past week. This is occurring as investors are rapidly selling their holdings to lock in gains from the recent rally.

After climbing to a multi-month high this month, the meme coin is now facing significant selling pressure across major cryptocurrency exchanges.

DOGE's Rise in Danger: Traders Offload 5 Billion Coins to Cryptocurrency Exchanges

DOGE's cryptocurrency exchange net position has been steadily increasing over the past week, reaching a three-year high of 5 billion coins on Sunday.

This metric tracks the net amount of DOGE entering cryptocurrency exchanges. As more holders transfer their tokens to centralized platforms, this clearly indicates an intention to exit positions, especially after the meme coin's recent price rally.

When it rises in this way, more tokens are deposited into cryptocurrency exchanges than withdrawn. This is a bearish signal, indicating that more DOGE is being prepared for sale and not held in cold wallets or withdrawn.

This trend is consistent with DOGE's rising Realized Profit/Loss (P/L) Ratio, indicating that sellers are selling at a profit. This ratio is currently at 15.78.

DOGE Realized Profit/Loss Ratio.

This metric measures the difference between the value of coins when acquired and when sold. A ratio above 1 indicates that coins are, on average, selling at a profit.

DOGE's current reading of 15.78 indicates significant profit-taking by sellers. This means that for every $1 in losses, $15.78 in profits are being realized. This could fuel sell-side momentum as more investors look to take their profits before a potential correction deepens.

DOGE Rally Could Fade as Selling Pressure Intensifies

DOGE's price saw a modest 2% increase in the last 24 hours, bolstered by the broader market rally. However, the increased cryptocurrency exchange inflows accompanying this rally suggest the momentum may be short-lived.

If profit-taking intensifies, DOGE could risk falling below the $0.22 support level, potentially opening the door to a deeper decline toward $0.17.

Conversely, if buying pressure increases and demand strengthens, the meme coin could rally towards the $0.28 resistance zone.