Despite its unimpressive price performance, Dogecoin [DOGE], the leading meme-based cryptocurrency by market value, has witnessed substantial accumulation in recent weeks.
The increase in accumulation, however, has not resulted in any significant price recovery, as DOGE continues to face challenges following recent drops.
Significant Dogecoin Holders Playing the Long-Term Strategy
As per data from CoinMarketCap, Dogecoin has seen a decrease of more than 8% in its value in the past week, bringing its market cap to approximately $15.8 billion. Despite the decline, large holders remain unfazed.
Statistics from IntoTheBlock indicate that significant holders have amassed over 2 billion DOGE tokens in the previous week, marking the most substantial accumulation event since January.
At current prices, this accumulation amounts to roughly $200 million, indicating that major Dogecoin investors are adopting a long-haul approach, banking on a potential recovery for the meme-inspired cryptocurrency.
Recent Upward Trends Fail to Propel Dogecoin
Despite the ongoing accumulation, Dogecoin’s price has continued on a downward trajectory. An analysis of its price chart reveals an over 8% decline on the final day of the preceding month, followed by a 6% drop at the beginning of the current month.
The downward trend persisted with another 2% fall on the subsequent day.
Despite witnessing some back-to-back upward movements recently, Dogecoin failed to reclaim its lost price levels. By the conclusion of the most recent trading session, Dogecoin had decreased by 2.8%, trading at around $0.108. Presently, it is trading slightly lower at $0.107, with a firm support level identified around the 50-day moving average, holding steady at $0.105.
More than 50% of DOGE Holders Remain Profitable
Notwithstanding the ongoing price drops, numerous Dogecoin holders are still in a profitable position.
An examination of the In/Out of the Money chart from IntoTheBlock indicates that over 69% of holders, comprising approximately 244,000 addresses, are still “In the Money” at the current price level.
Further scrutiny of the Global In/Out of the Money chart reveals that over 72% of Dogecoin holders are currently in profit, reflecting robust investor sentiment amid recent market turbulence.
While Dogecoin has witnessed a substantial accumulation by significant holders, its price continues to encounter obstacles.
Nonetheless, with more than 50% of holders still profitable and solid support around $0.105, Dogecoin’s long-term outlook may still hold promise.