Fresh data suggests that Dogecoin [DOGE] traders engaging in short-term transactions over the past month have experienced marginal gains, averaging at around +1.7% only.
In stark contrast, individuals who have maintained their DOGE positions for a year have seen a decrease of roughly 20.8% compared to their standings twelve months ago.
With scrutiny, we delve into the current state of DOGE to ascertain the potential for profitability among long-term investors in the foreseeable future.
Dogecoin Long-Term Holders Facing Challenges
Santiment’s recent analysis has shed light on the condition of various categories of DOGE holders. While DOGE saw some advantages last month during the memecoin craze following SunPump’s launch by Tron, the landscape has since shifted.
According to data from CoinMarketCap, DOGE witnessed a drop of over 3% in value within the last 24 hours. At the time of reporting, Dogecoin was priced at $0.09956, boasting a market cap exceeding $14.5 billion.
A check by CryptoCrypto on IntoTheBlock’s statistics has revealed that despite recent setbacks, the number of long-term DOGE holders (addresses with DOGE for more than a year) has been on the rise over recent months.
This trend hints at the confidence long-term investors have in the world’s leading memecoin.
Potential for Profit among Investors
CryptoCrypto further explored the on-chain data of the foremost memecoin globally to assess if long-term investors’ belief in the coin will yield profitable outcomes.
Analysis of Santiment’s data indicates that DOGE’s trading volume surged even as its price dropped, a trend that may be viewed as bearish. Nevertheless, the weighted sentiment for Dogecoin increased, signaling rising bullish sentiments. Moreover, the MVRV ratio also grew, hinting at a potential price increase for the coin.
Reviewing Glassnode’s data, the long/short ratio for DOGE showed an upward trend. A rising metric typically indicates a prevalence of long positions over short ones in the market, signaling heightened bullish sentiment.
Observing the token’s daily chart, DOGE appeared to be testing a crucial support level.
The Chaikin Money Flow (CMF) indicated a possible failure to test support as it traded sideways. A similar trend was seen in the Money Flow Index (MFI).
Despite the above, the MACD showed promise for investors as it evidenced a bullish crossover.