Dogecoin likely in the accumulation phase with 20% DOGE wallets sitting on unrealized profits
- Dogecoin wallets sitting on unrealized profits climbed to 20.73%, analyst noted a strong accumulation on the monthly chart.
- DOGE price range between $0.05 and $0.093 is likely an accumulation phase for the next bullish breakout in the meme coin.
- Crypto analyst Poseidon has set a target of $0.18 for DOGE, based on the weekly price chart.
Pseudonymous technical analyst, Poseidon, concluded that Dogecoin price is likely in its accumulation phase after analyzing the monthly, weekly and daily charts. On-chain metrics from IntoTheBlock reveal that 20.73% of DOGE wallet holders are profitable at the current price level.
Dogecoin is in the accumulation phase according to Poseidon
Technical analyst, Poseidon, noted a strong accumulation in DOGE. Poseidon considers the range between $0.093 and $0.05 as the key range for the meme coin. DOGE’s price movement in this range is likely the accumulation phase for the next period in the meme coin’s trajectory.
Poseidon explains that Dogecoin has exhibited strong accumulation despite its sideways price movement, when compared to Layer 1 and other tokens in the crypto ecosystem. On the monthly price chart, the analyst marks the $0.048 level as key for DOGE. Every DOGE token bought between $0.025 and $0.010 is considered cheap and likely to yield 10x gains in the long run, according to Poseidon’s analysis.
DOGE/USDT weekly price chart on Binance
On-chain metric Global In/Out of the Money (GIOM) from crypto intelligence tracker IntoTheBlock supports the thesis of long-term price gain in DOGE, presented by Poseidon. The analyst’s target for DOGE is $0.18.
DOGE wallets sitting on unrealized profits limited to 20%
The GIOM metric estimates the volume or percentage of the wallets holding the token that are currently sitting on unrealized profits or losses. If the average price at which these wallets acquired the asset is below the current price, the wallet is sitting on unrealized profits; if the acquisition cost of the wallets is above the price of the asset, it is sitting on unrealized losses.
Based on the chart from IntoTheBlock, 20.73% of the wallets holding DOGE are currently sitting on unrealized profits. Wallets that are profitable are likely to engage in “profit-taking” and this would increase the selling pressure on DOGE. However, these addresses are currently limited to 20.73% against 73.72% that are underwater.
DOGE wallet addresses that are profitable or underwater
As long as the count of wallets facing unrealized losses exceeds the profitable ones, DOGE is more likely to continue its recovery and resume an upward trajectory. At the time of writing, DOGE price is $0.063 on Binance.
Bitcoin, altcoins, stablecoins FAQs
What is Bitcoin?
Bitcoin is the largest cryptocurrency by market capitalization, a virtual currency designed to serve as money. This form of payment cannot be controlled by any one person, group, or entity, which eliminates the need for third-party participation during financial transactions.
What are altcoins?
Altcoins are any cryptocurrency apart from Bitcoin, but some also regard Ethereum as a non-altcoin because it is from these two cryptocurrencies that forking happens. If this is true, then Litecoin is the first altcoin, forked from the Bitcoin protocol and, therefore, an “improved” version of it.
What are stablecoins?
Stablecoins are cryptocurrencies designed to have a stable price, with their value backed by a reserve of the asset it represents. To achieve this, the value of any one stablecoin is pegged to a commodity or financial instrument, such as the US Dollar (USD), with its supply regulated by an algorithm or demand. The main goal of stablecoins is to provide an on/off-ramp for investors willing to trade and invest in cryptocurrencies. Stablecoins also allow investors to store value since cryptocurrencies, in general, are subject to volatility.
What is Bitcoin Dominance?
Bitcoin dominance is the ratio of Bitcoin's market capitalization to the total market capitalization of all cryptocurrencies combined. It provides a clear picture of Bitcoin’s interest among investors. A high BTC dominance typically happens before and during a bull run, in which investors resort to investing in relatively stable and high market capitalization cryptocurrency like Bitcoin. A drop in BTC dominance usually means that investors are moving their capital and/or profits to altcoins in a quest for higher returns, which usually triggers an explosion of altcoin rallies.
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Author
Ekta Mourya
FXStreet
Ekta Mourya has extensive experience in fundamental and on-chain analysis, particularly focused on impact of macroeconomics and central bank policies on cryptocurrencies.
