Once again, Dogecoin [DOGE] has caught the attention of investors. According to the most recent data provided by IntoTheBlock, the exchange net flow for Dogecoin witnessed a significant increase of 10.5%. This uptick adds momentum to the potential for a forthcoming price surge.
With a growing presence of whales in the market, where a remarkable 73% of holders are currently experiencing profit, the question arises whether these factors can propel DOGE towards the $0.12 mark.
Rising Dogecoin Net Flows
The substantial 10.45% surge in exchange net flow signifies a notable shift in the Dogecoin market dynamics. Typically, an escalation in net flow suggests an uptick in circulating coins, possibly attributed to heightened buying or selling activities.
The recent surge in Dogecoin’s value may indicate a surge in market interest, potentially anticipating a breakout in its price movement.
Source: IntoTheBlock
Increased Hold by Major Investors
An additional pivotal factor influencing Dogecoin’s momentum is the recent uptick in whale activity. Currently, whales, holding over $5 million worth of Dogecoin, command 57.86% of the total altcoin supply.
This significant concentration level implies that prominent investors exhibit long-term confidence in Dogecoin.
When such sizable whales hold a substantial portion of an asset, it typically fosters positive market sentiment, boosting the likelihood of a price rally.
Source: Santiment
Profitability Among Dogecoin Holders
A particularly promising indication for DOGE’s future lies in the fact that 73% of its holders are currently in a profitable position. A high percentage of profitable holders often fosters a bullish sentiment, signaling that a majority of investors are reaping gains.
This widespread profitability enhances market confidence, thereby stimulating buy-side pressure.
Source: IntoTheBlock
Is Dogecoin Poised for a Breakthrough?
Given the notable surge in exchange net flows, strong whale activity, and the overwhelmingly high percentage of profitable holders, Dogecoin is primed for a potential uptrend. The milestone of reaching $0.12 remains uncertain.
Nonetheless, the data presents a positive outlook for the future of this meme-inspired cryptocurrency.