Dogecoin (DOGE) saw a reduction in price after Elon Musk inevitably removed the Shiba Inu dog and put the official Twitter logo on the social media platform. But despite this development, it hasn’t hit the profit margins of DOGE investors much, most of whom continue to make a profit on their meme coin holdings thus far.
55% of Dogecoin Investors Still Making Profits
Even after a drop of more than 10% in the last two days that has brought the price of Dogecoin to the $0.08 level once again, the vast majority of holders are still making a profit. According to data from in the blocka full 55% of all DOGE investors are still ‘in the money’.
This currently leaves around 39% of investors losing money at current prices and the remaining 6% being neutral, meaning they last bought their coins in the same price range that DOGE is currently trading.
Interestingly, the number of long-term DOGE holders continues to rise. The meme coin now boasts a total of 73% of all investors who have held its tokens for more than a year, a fact that has been bullish for any digital asset in the past. The more these investors hold of their coins, the less likely they are to sell, therefore removing a certain amount of selling pressure from the market.
Majority of DOGE holders in profit | Source: IntoTheBlock
DOGE whale transactions (transactions with a total value of more than $100,000) also skyrocketed last week, reaching more than $2.89 billion in this 7-day period. There was a notable spike during the middle of the week when the Elon Musk hype was at its peak, but these large transactions have eased as the price of the meme coin has plunged.
DOGE aligns with the crypto market
DOGE’s decline in recent days has put it back in tandem with the mainstream crypto market once again. Instead of a crazy breakout, the meme coin is moving much more slowly, which is in line with the general momentum of market movers like Bitcoin and Ethereum.
Dogecoin has now lost most of its gains from earlier in the week, but still looks quite strong in the medium to long term with prices above its 50 and 100 day moving averages. Its first resistance now sits just above $0.09, which is not daunting, especially given the fact that there is now ample support above $0.08. As long as the meme coin is up to hold this support, a retest of $0.1 will follow sooner rather than later.
However, DOGE is still seeing significant losses compared to the rest of the cryptocurrencies in the top 10. It is down more than 9% in the last 24 hours, making it the worst performer of the bunch. However, DOGE is doing well on the weekly chart with gains of 11% and its daily volume continues to be above $1.3bn.
DOGE returns to $0.08 level | Source: DOGEUSD on TradingView.com
