Dogecoin Investors Realize $124 Million Loss in 24 Hours

Dogecoin, a prominent cryptocurrency, is currently facing significant pressure as it is the only top 10 coin where investors are realizing more losses than profits. According to on-chain data, Dogecoin investors have incurred a loss of $124 million over the last 24 hours. This data was shared by the on-chain analytics firm, which compared the Realized Loss and Realized Profit metrics of major cryptocurrencies.

The Realized Profit and Realized Loss metrics measure the amount of profit or loss that investors are realizing through their transactions. These metrics work by analyzing the transfer history of each coin being sold to determine the price at which it was previously moved. If the previous value is less than the current selling price, the sale results in profit realization. Conversely, if the previous value is higher, it indicates loss realization. The Realized Profit sums up the difference between the two prices involved in all profitable sales, while the Realized Loss does the same for all loss-making sales.

Among the top 10 cryptocurrencies by market capitalization, Dogecoin stands out as the only asset where the Realized Loss exceeds the Realized Profit. The 24-hour Realized Loss for Dogecoin is approximately $132 million, while the Realized Profit is significantly lower at $5 million. This suggests that while other cryptocurrency investors are harvesting gains, Dogecoin holders are experiencing panic selling at a loss.

In contrast, Bitcoin investors have realized the largest profit among the top coins, with a Realized Profit of $1.3 billion and a Realized Loss of only $33 million. This indicates that selling in the Bitcoin market is heavily skewed towards profit-taking. For Ethereum, the second-ranked digital asset, the Realized Loss of $18.4 million is roughly half of its Realized Profit of $35.2 million, showing a more balanced market.

Historically, a dominance of profit realization, as seen with Bitcoin, has often preceded market tops, which could be a bearish sign. Conversely, a dominance of loss-taking, as seen with Dogecoin, can sometimes facilitate reversals to the upside. Therefore, while not guaranteed, Dogecoin's current situation may not be entirely negative in this context.

Dogecoin's price has been volatile, touching the $0.170 mark during the weekend but retracing below $0.165 to start the week. This decline in price over the past few weeks reflects the current market sentiment and the pressure that Dogecoin is under.