Dogecoin, just like the broader market, has seen a slowdown in price in recent times. However, the meme coin remains one of the most profitable for investors given its high profitability. This could be related to the fact that the larger majority of DOGE holders are choosing to hold their coins for a longer time.
59% Of Dogecoin Holders In Profit
According to data from IntoTheBlock, the majority of Dogecoin holders are still in profit. It currently works out to 59% of all holders who are seeing a profit on their investments compared to 36% of investors who are seeing a loss. The remaining 4% of investors are sitting in neutral territory, which means the current price of the digital asset is the same as where they purchased their tokens at.
One factor that could explain the high profit margins of these investors is that more DOGE investors are long-term holders. Presently, a total of 75% of all wallets holding the meme coin have been held for more than one year. This is a factor that has helped the profit margins of Bitcoin and Ethereum holders as longer-term holders have been proven to make more profit.
59% of DOGE holders are in profit | Source: IntoTheBlock
To put this in perspective, 70% of BTC holders have held for more than one year and 63% of investors are in profit. Likewise, 71% of ETH investors have held for at least one year and 62% of ETH investors are seeing profits.
So despite the drawdown in price, the vast majority of investors in these assets could be seeing profit because they purchased over a year ago when prices were lower than what they are now.
In contrast, Shiba Inu, Dogecoin’s fiercest competitor has a long-term holder composition of 65% of investors who have held for over one year. Its holder base in profit currently works out to 42% with 54% seeing losses.
DOGE surges following Elon Musk's tweet | Source: DOGEUSD on TradingView.com
DOGE On The Charts
The price of Dogecoin has held up surprisingly well in the market so far. Even with the slowdown as bitcoin’s price fell below $24,000 once more, DOGE was able to record an over 4% rally in the early hours of Wednesday, triggered by billionaire Elon Musk, once again, publicly expressing his support for the meme coin.
High time I confessed I let the Doge out pic.twitter.com/TAi4p1khAd
— Elon Musk (@elonmusk) February 22, 2023
This price recovery puts the price of the meme coin at around $0.087 and brings its total market cap to $11.5 billion. It is now sitting just $200 million below the market cap of Polygon which means that DOGE flipping MATIC for the ninth spot on the list of largest cryptocurrencies by market cap is very possible.
Support levels for DOGE are now at $0.08 while resistance lies at $0.09 for the digital asset. Although this resistance is unlikely to be beaten with the current momentum, another run like what was experienced last week could help propel DOGE to flip this level and rally to $0.1.
At the time of writing, DOGE is changing hands at $0.08686, up 0.55% in the last week, according to data from Coinmarketcap.
Follow Best Owie on Twitter for market insights, updates, and the occasional funny tweet… Featured image from Capital.com, chart from TradingView.com