According to analysts, Dogecoin (DOGE) is set for a parabolic rally above $10, with more than two-thirds of wallets in profits.
DOGE was trading at around $0.10 at the time of writing. The coin has bounced slightly from the August 5 dip, when prices plunged to $0.08.
Despite the recent drop, according to data from IntoTheBlock, around 68% of DOGE wallet addresses are still in profit. The high profitability suggests positive market sentiment and could increase investors’ confidence, which will fuel buying activity and more gains.
While the on-chain data shows a positive price outlook, Dogecoin network activity remains low. However, this has not affected buyer and seller behavior. DOGE traders have an average holding time of 2.3 years, indicating an unwillingness to sell. Moreover, 67% of holders have held onto their assets for more than a year.
With 68% of Dogecoin wallets still in profit, the asset is showing resilience and currently ranks 4th among assets with a market cap of over $1 billion. However, the network needs a catalyst to drive further growth. Here's why: pic.twitter.com/zESlnm6LJ5
— IntoTheBlock (@intotheblock) August 7, 2024
The unwillingness to sell is also seen in data by Santiment, which shows that large wallet holders have been accumulating DOGE at a high rate over the past year. The number of DOGE wallet addresses with between 10,000,000 and 100,000,000 tokens has increased by more than 12% since the beginning of the year.
The high percentage of wallets in profits, alongside a steady accumulation by whales, shows that large addresses have been buying DOGE at low prices. This trend indicates DOGE might have already bottomed up, with these traders expecting further upside.
Is DOGE Headed to $10?
DOGE is showing resilience, and according to analyst Dima James Potts, the largest meme coin could be headed to $10.
“10+ Dogecoin?! When will the Dogecoin bull run start? Historical chart analysis suggests a significant price increase could begin once the red and green lines cross,” the analyst stated.
The DOGE price has formed an ascending channel, as seen with the two parallel white lines. This indicates that DOGE is in a long-term uptrend. A bullish continuation pattern has also been formed, with the price entering a period of consolidation followed by a price breakout.
According to this analysis, DOGE has made significant bullish moves every time it touched the lower support line. If the pattern holds, DOGE is on the verge of a major breakout targeting higher prices within the ascending channel.
