DOGE Price Surged 95%, Could Profit Taking Lead to a Dip?
Are we witnessing the calm before the storm in Dogecoin? The asset added over half a million holders in 2 weeks during February.
However, its number of profitable holders and weak support zones could lead to a potential downturn. Could this be a prelude to a bearish descent, or will the DOGE community manage to stave off the decline?
DOGE Reaches Record 6M Holders:-
DOGE holders currently sit at 6.5M, one of the most impressive numbers in the crypto markets. This number was reached on February 2, which was part of an impressive surge in Dogecoin holders from 5.82M on January 28 to 6.35M on February 10. This is an almost 10% increase in holders, which is remarkable for a token of this size.
It is interesting to note that all that growth was followed by a price surge. However, between February 10 to March 4, DOGE prices grew from $0.081 to $0.1950, an increase of approximately 141%.
However, although the number of holders skyrocketed at the beginning of February, it became pretty stable since the beginning of March.
This may not mean anything on its own, but following a 140% price rally and a growing number of holders, the stable number could mean that new money is not flowing into DOGE. Investors may be unsure if the bullish sentiment will continue.
Profitable Holders Could Create Selling Pressure
Many holders entered two weeks before the price surge, contributing to the rising percentage of holders currently profitable in DOGE.
An impressive count of more than 5.24 million addresses, coincidentally equal to the total number of DOGE holders recorded on November 24, 2023, are in profit. They account for a substantial 84.75% of all holders. 12.28% face losses, while a small fraction of about 2.28% are positioned at the break-even point.
Given that nearly 85% of addresses are currently sitting on gains, it stands to reason that this could exert considerable selling pressure on DOGE.