Dogecoin faces take profit risks - A crucial level that could determine its next move.

The cryptocurrency market has recently shown signs of recovery, and Dogecoin is no exception to this trend. This meme coin has increased by more than 16% in the past week, but yesterday it remained flat. Some signals on the chain and charts suggest that sellers may be preparing to take profits, leading to a pause or short-term pullback. Whether DOGE can continue to rise or start to decline depends on a key support level. Profit-taking pressure increases, capital flows in to support The percentage of profitable addresses for Dogecoin has recently reached 84%; a similar level to July 27 before the price dropped from $0.24 to $0.19 in just a week. Traditionally, when too many people are holding profitable positions, some tend to take profits.

To prove this, the net cash flow on the exchange shifted from -52 million dollars on August 10 to +2.7 million dollars on August 11. More and more DOGE is being transferred to exchanges, which is often a sign that traders are preparing to sell.

SOPR Suggests a Cooling Down, Led by Profit Takers The Output Profit Ratio Expenditure (SOPR) indicates whether the cryptocurrency being sold is making a profit or a loss. A value above 1.0 means that holders are making a profit.

On August 10, the SOPR index of DOGE rose to 1.045, close to the level recorded at the end of July, followed by rapid adjustments. This is a sign that the market may be approaching another short-term cooling point. Furthermore, the increase in the SOPR index aligns with the selling trend. The Important Levels on the Chart Can Determine What Will Happen Next for the Price of Dogecoin On the 4-hour chart, the price of Dogecoin is fluctuating around the $0.235 level, just below the descending trendline of the descending triangle pattern. This pattern typically has a bearish tendency in shorter time frames, indicating consolidation rather than a breakout. Fibonacci levels serve as the bottom of a descending triangle, represented as important support levels. The price of Dogecoin has surpassed several resistance levels around the $0.23 mark. If the $0.235 level is broken, traders may need to pay attention to the following signs:

Support level to watch: $0.22 — This level has held firm in the past. If it holds again, buyers may enter. If it is broken, the price of Dogecoin could drop to lower levels. Trigger factor for the uptrend: Breaking above $0.24–$0.246 will break the triangle pattern and create opportunities for buyers to push the price to $0.25 or higher. Breaking above the $0.24 mark will invalidate the descending triangle pattern and maintain the bullish momentum. Currently, the $0.22 level is the threshold that could determine whether DOGE continues to rise or sees more red candles.