Dogecoin has extended its seven-day losses into the past 24 hours but some holders continue to remain strong. On-chain data has revealed that even though Dogecoin’s value has plummeted by 21% in the last seven days, many long-term holders of the meme coin are still turning a decent profit. Particularly, profitability data from IntoTheBlock shows that 83% of wallet addresses holding DOGE are still in the green despite the recent price downturn.
Dogecoin Profitability Remains High
IntoTheBlock’s “In/Out of the Money” metric has shown an interesting dynamic regarding Dogecoin’s price. The metric measures the number of addresses still making a profit at the current price levels, giving a glimpse into what might be the sentiment among holders.
At the time of writing, this metric shows that 5.18 million DOGE addresses are still in profit, representing 82.72% of the total addresses. This is in comparison to 870,290 addresses currently in loss, which represent 13.9% of the total addresses. Interestingly, 211,600 addresses, representing 3.38% of total addresses, are currently in the money, meaning they are neither in profit nor loss.
However, it is important to keep in mind that this measure looks at all the addresses. This means that the majority of those in profit are those who bought into Dogecoin very early on, as demonstrated in the picture below. A higher number of addresses who bought during the recent DOGE bull run in March are out of the money.
Source: IntoTheBlock
The “In/Out of the Money Around Price” helps to show the profitability better, especially when considering the shorter term. Interestingly, a majority (55.26%) of addresses who bought between $0.132243 and $0.179879 are still in profit.
What’s Next For DOGE?
At the time of writing, Dogecoin is trading at $0.1587, down by 4.81% in the past 24 hours and 21% in the past seven days. However, the high profitability despite the recent downturn indicates that the majority of DOGE holders are still holding on despite the price downturn, which is a positive indicator.
DOGE whales have upped their activities with large transactions amidst the decline. IntoTheBlock data shows that $744.62 million worth of DOGE has left crypto exchanges in the past seven days, compared to $671.61 million inflows in the same time frame. The higher outflow suggests that there are more investors still accumulating during the price dip than those selling off.
The “In/Out of the Money” metric also reveals the number of addresses that bought in at a given price range, helping to understand support and resistance levels. Currently, this metric shows 111,280 addresses bought in between $0.169 and $0.189, contributing a minor resistance that DOGE bulls can break easily.
Although a break above this selloff could initiate a minor selloff as some buyers look to take profits, the major hurdle is above $0.18. A full bullish reversal and break above $0.18 would give DOGE a clear path back to $0.22, which is the highest it has reached so far in the current bull cycle.
DOGE price succumbs to bearish pressure | Source: DOGEUSDT on Tradingview.com