Dogecoin has seen impressive price action since the beginning of the week. Notably, the price of Dogecoin has doubled in the past 30 days, with price data showing a 115% increase in that time frame.
The strong rise in the price of Dogecoin has allowed the meme coin to break through $0.22 for the first time since April 1 (more than seven months ago). Interestingly, this breakthrough means that the price of the meme coin is currently at its highest point so far in 2024. In addition, the rise in the price of Dogecoin has also allowed more holders to start making profits.
Dogecoin's 7-month high drives most stocks to profit
Data from IntoTheBlock shows that the vast majority of DOGE holders are currently in profit, thanks to the recent price increase. Specifically, IntoTheBlock's profitability indicator shows that 5.82 million addresses are currently in profit, accounting for 91.17% of the total addresses.
In terms of specific buy zones close to current prices, IntoTheBlock’s profitability indicator also shows that the majority (62.35%) of addresses that bought between $0.178537 and $0.242947 are making money at current prices.
As we enter a new week, the price of Dogecoin faces two scenarios depending on the current market dynamics and profitability of holders. One scenario is that the rise in the price of Dogecoin cools down significantly. Although the price is in an upward momentum, the recent record high in 2024 may make it difficult to break through the key resistance level.
Since a large number of holders are currently taking profits, some may be inclined to sell and lock in gains, which could put downward pressure on prices. If this wave of profit-taking outweighs buying interest, DOGE could experience a sharp price correction.
DOGE market cap is currently $34.9 billion. Chart: TradingView.com
On the other hand, Dogecoin could continue to rise, which would set the stage for further gains in the coming week. If the buying momentum continues at this rate, Dogecoin could easily approach its all-time high of $0.7316 by the end of the year. At the time of writing, Dogecoin is trading at $0.2352, up 11.5% in the past 24 hours.
Analysts Say Dogecoin Price Will Soon Reach $1.17
Only time will tell if the price of Dogecoin will maintain its upward momentum or enter a consolidation phase. A cryptocurrency analyst on the social media platform X who goes by the pseudonym Mags (@thescalpingpro) remains bullish, predicting that the price of Dogecoin will continue to rise.
