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A recent analysis by the on-chain data analytics company IntoTheBlock shed light on the current state of the Dogecoin (DOGE) network, highlighting both its resilience and the challenges it faces. Despite mixed signals from on-chain data, Dogecoin continues to maintain its strong position in the cryptocurrency market.
High Percentage of Wallet Addresses in Profit
One of the most striking findings for Dogecoin is that 68% of wallet addresses holding DOGE are still in profit. This is significant for the meme-inspired altcoin and places it fourth among assets with a market value over $1 billion. The high percentage of profitable wallet addresses indicates a high level of confidence in the altcoin.
However, the Dogecoin network also faces some issues. The number of newly created Dogecoin wallet addresses is steadily declining, indicating a slowdown in new participants joining the network. Transaction activity has also been inconsistent over the past three months, with only a few short-lived spikes.
Interestingly, data shows that Dogecoin’s network activity is predominantly concentrated in Western time zones. This suggests a potential growth opportunity for greater adoption and use of the altcoin in the Asia-Pacific (APAC) region.
Dogecoin network has a significant aspect of investor loyalty. The average holding period is 2.3 years, and 67% of all DOGE investors have held their assets for over a year. This demonstrates the participants’ determination to hold onto their Dogecoin assets even if they are not actively trading.
Dogecoin’s Journey to 1 Dollar
The potential for Dogecoin to reach 1 dollar continues to be a subject of much speculation. Although the road to the 1-dollar milestone is challenging, market optimism remains. Currently, Dogecoin is trading at $0.10, requiring a 900% increase from current levels to reach 1 dollar.
In the short term, Dogecoin’s price movement is critically important. The altcoin fell to $0.08 after the crash on August 5, known as “Black Monday,” but has since started to recover and is currently trading at $0.10. If the bulls can sustain this upward momentum, Dogecoin could potentially rise to significant resistance levels expected at $0.12 and $0.14. Conversely, if the price fails to hold above $0.10, it could fall to $0.08 or even $0.06.
