Despite its lackluster price performance, Dogecoin [DOGE], the largest memecoin by market capitalization, has experienced significant accumulation in recent weeks.
Although the increase in accumulation has not translated into any significant price recovery, DOGE is still struggling after recent declines.
Dogecoin's Big Investors Are Playing the Long Game
According to CoinMarketCap, Dogecoin has lost more than 8% of its value over the past seven days, bringing its market capitalization down to around $15.8 billion.
The decline has eroded some of the market value, but big investors remain undeterred.
Source: IntoTheBlock
Data from IntoTheBlock shows that large investors have accumulated more than 2 billion DOGE tokens in the past week, marking the largest accumulation event since January.
Based on current prices, this accumulated token holding is worth around $200 million, suggesting that major Dogecoin investors are taking a long-term approach, anticipating a recovery in the memecoin.
Recent Uptrend Fails to Push Dogecoin Up
Despite the accumulation, the price of Dogecoin continues to decline. Analysis of the price chart shows that Dogecoin fell more than 8% on the last day of last month, followed by a 6% drop at the beginning of the current month.
The downtrend continued with another 2% drop the following day.
Source: TradingView
Although Dogecoin has had some steady gains recently, they have not been enough to regain lost price levels.
As of the end of the most recent trading session, Dogecoin was down 2.8%, trading at around $0.108.
At the time of writing, it is trading slightly lower at $0.107, but has found support at the 50-day moving average, holding steady around the $0.105 mark.
Over 50% of DOGE holders are still profitable
Despite the continued decline in price, many Dogecoin holders are still profitable. Analysis of the In/Out of the Money chart from IntoTheBlock shows that over 69% of holders, or about 244,000 addresses, are still âIn the Moneyâ at the current price.
Further analysis of the Global In/Out of the Money chart shows that over 72% of Dogecoin holders are currently in the profit, reflecting investor optimism despite recent market challenges.
Although Dogecoin has seen record accumulation from major investors, the memecoin's price continues to face challenges.
However, with over 50% of Holders still in profit and strong support around the $0.105 price level, Dogecoin's long-term outlook could still be promising.
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