Dogecoin extended its seven-day losses over the past 24 hours, but some holders continue to stay strong. On-chain data revealed that even though Dogecoin the value has fallen by 21% over the past seven days, many long-term holders of the meme coin are still making decent profits. In particular, profitability data from IntoTheBlock shows that 83% of wallet addresses containing DOGE are still in the green despite the recent price drop.
Dogecoin profitability remains high
“In/Out of the Money” by IntoTheBlock metric showed some interesting dynamics regarding the price of Dogecoin. The metric measures the number of addresses that are still making profits at current price levels, providing insight into what the feeling among the holders.
At the time of writing, this metric shows that 5.18 million DOGE addresses are still in profit, representing 82.72% of total addresses. This compares to the 870,290 addresses currently in loss, which represent 13.9% of the total addresses. Interestingly, 211,600 addresses, or 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 measurement concerns all addresses. This means that the majority of beneficiaries are those who purchased Dogecoin early on, as shown in the image below. A higher number of addresses that purchased during the period recent DOGE bull run by March, they ran out of money.
Source: IntoTheBlock
The “In/Out of the Money Around Price” makes it possible to better show profitability, especially if we consider the short term. Interestingly, the majority (55.26%) of addresses that purchased between $0.132243 and $0.179879 are still making a profit.
What’s next for DOGE?
At the time of writing, Dogecoin is trading at $0.1587, down 4.81% over the past 24 hours and 21% over the past seven days. However, the high profitability despite the recent recession indicates that the majority of DOGE holders are still holding on despite the price decline, which is a positive indicator.
DOGE whales have intensified their activities with large transactions amidst the decline. IntoTheBlock data shows that $744.62 million worth of DOGE left crypto exchanges over the past seven days, compared to $671.61 million inflows during the same period. The larger capital outflows suggest that there are more investors still accumulating during falling prices than those selling.
The In/Out of the Money metric also reveals the number of addresses that have purchased within a given price range, helping to understand support and resistance levels. Currently, this metric shows 111,280 addresses purchased between $0.169 and $0.189, contributing a slight resistance this DOGE bulls can break easily.
While a break above this sell-off could trigger a minor sell-off as some buyers look to take profits, the main hurdle lies above $0.18. A complete bullish reversal and break above $0.18 would give DOGE a clear path towards $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
Featured image from FinSMEs, chart from Tradingview.com
