According to data provided by IntoTheBlock, Dogecoin (DOGE) investors have reached a profitability rate of 85%. The blockchain data portal analysis highlighted that 12% of investors are still out, which should not be interpreted as them never owning DOGE. Instead, it can be understood that a small portion continues to invest in DOGE with low loss rates. Despite this, the aforementioned increase in the number of investors who continue to make gains sheds light on DOGE’s recent performance.
Current State of Dogecoin
At the time of writing, Dogecoin was trading at $0.1616, which represented a 90.18% increase over the last seven days. DOGE even experienced a 15% increase today alone. However, the price performance seen in the last 7 days was not the only interesting aspect regarding the coin.
A broader review shows that many cryptocurrencies in the market have increased in value. However, as of today, some of them were seeing a slowdown in momentum.
But DOGE stood out from this group, as its value increase continued today. Moreover, Average Coin Age (ACA) indicators suggested that DOGE had not yet reached a local peak.
The high ACA value indicated that HODLers continued to keep their coins in their wallets. Generally, sudden increases in ACA are interpreted as coins being transferred to exchanges, which can bring selling pressure. However, a decrease was observed in Dogecoin’s 90-day ACA.
This decrease suggests that many DOGE investors are withdrawing their cryptocurrencies from exchanges to cold wallets. This also indicates that the same investors do not want to sell in the long term.
In such cases, if demand increases and selling pressure decreases, a price rise can be observed. If the value increases, this could mean that the 12% of investors currently at a loss could reach the break-even point or become profitable.
The Future of Dogecoin
The funding rate was another important metric. To explain what the funding rate is, it can be defined as the cost of holding an open position in a perpetual contract.
A positive funding rate indicates that the perpetual price is trading at a higher price compared to the spot price. On the other hand, a negative funding rate means that the perpetual price is trading at a lower rate. According to data from Coinglass, Dogecoin’s funding rate had risen to 0.15% by the time of writing.
Considering the current situation of DOGE, the price rise along with the high funding suggests that investors taking long positions are aggressive and could be rewarded for it. Additionally, spot volume continues to increase while this is happening.
If this movement on Dogecoin’s side continues, the price could break the upward resistance and move to levels that were seen as support in the past. This situation could eventually bring the meme coin to $0.20.
