Dogecoin Struggles the Most as Bitcoin, Ethereum, and XRP Slip on Profit-Taking.

Dogecoin Struggles as Profit-Taking Hits Major Cryptos, Bitcoin and Ethereum See Slight Pullbacks

Dogecoin led the pack in losses among major cryptocurrencies on Thursday, as the market experienced a round of profit-taking following recent gains. The meme-inspired token dropped over 6%, while other major digital assets such as Bitcoin (BTC), Ethereum (ETH), and XRP also saw modest declines as traders opted to cash out.

Dogecoin’s sharp decline came despite its recent surge, reflecting the volatility inherent in meme coins. The sell-off in Dogecoin, combined with minor corrections in Bitcoin and Ethereum, pushed the broader crypto market down by about 2% on the day. Solana (SOL) and Cardano (ADA) also experienced slight losses, down around 3% and 1.5%, respectively.

Bitcoin, while still trading near $93,000, saw a modest 1.5% dip, and Ethereum followed with a smaller 0.9% drop. Despite this, both assets remained above key support levels, signaling continued strength despite short-term profit-taking.

“Profit-taking was expected after the recent run-up in prices,” said Rachel Lee, a market strategist at Digital Wealth Group. “But the larger trend in Bitcoin and Ethereum remains positive. These assets have solidified their place as safe-haven investments, particularly in uncertain economic times.”

The broader market correction followed a period of strong gains, fueled by renewed institutional interest in Bitcoin. As cryptocurrency adoption continues to expand, Bitcoin’s growing institutional inflows have helped it maintain its dominance in the space. Despite its slight pullback, Bitcoin’s long-term outlook remains robust, with analysts eyeing the $95,000 level as a potential breakout point.

Ethereum’s decline was more muted, reflecting its role as a major platform for decentralized finance (DeFi) and NFTs. “Ethereum has experienced significant growth, and its fundamentals remain strong, so a small pullback is not necessarily a sign of weakness,” said John Harris, senior analyst at Crypto Insights.

While profit-taking has brought some volatility, analysts are generally optimistic about the outlook for Bitcoin and Ethereum, particularly as institutional investors continue to take positions in the market. Meanwhile, the continued popularity of Dogecoin among retail investors makes it more susceptible to sudden fluctuations, highlighting the risks involved in trading meme coins.

As the market consolidates, investors are closely monitoring key support levels for Bitcoin and Ethereum, with many expecting the next rally to push these assets to new highs in the months ahead. For now, the focus remains on the broader trend of institutional adoption, which continues to drive the market’s growth and provide long-term stability amid short-term volatility.