Dogecoin whales add 2B tokens, but DOGE still dips – Why?

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    Dogecoin has seen significant declines in the last two weeks.
    DOGE has slipped slightly into a bear trend due to the declines.

As a seasoned crypto investor with a knack for navigating volatile markets and a soft spot for memecoins, I can’t help but find myself intrigued by Dogecoin’s recent performance. While the last two weeks have seen DOGE take a nosedive, I see the current bear trend as an opportunity rather than a setback.

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In recent weeks, although Dogecoin [DOGE], the leading meme coin based on market value, hasn’t shown great progress in terms of its pricing, there has been noticeable buying interest or accumulation.

Despite an increase in stockpiling, there hasn’t been a significant recovery in the price so far, as Dogecoin (DOGE) still faces challenges following its recent drops.

Large Dogecoin holders playing the long game

Based on data from CoinMarketCap, Dogecoin experienced a drop of more than 8% in value within the past week, reducing its market capitalization to approximately $15.8 billion. This dip has caused a slight erosion of its overall market worth, but significant investors appear unfazed by this development.

According to data from IntoTheBlock, there has been a significant build-up of Dogecoin (DOGE) by major investors over the last week, representing the most substantial accumulation period since January.

Given the present values, this amassment is roughly estimated to be around 200 million dollars. This implies that prominent Dogecoin investors might be adopting a strategic, long-term stance, anticipating the memecoin’s future restoration.

Recent uptrends fail to boost Dogecoin

Even though it’s been piling up, Dogecoin’s value has persistently dropped. A look at its price graph reveals that Dogecoin suffered an over 8% drop on the last day of the previous month and a subsequent 6% decrease at the beginning of the current month.

The downtrend continued with an additional 2% drop on the next day.

Despite experiencing a series of gains in recent days, Dogecoin failed to recover its previous price points. At the close of the latest trading period, Dogecoin dropped by approximately 2.8%, settling at roughly $0.108. Currently, it’s trading slightly lower at $0.107, but it has managed to hold steady near the 50-day moving average, which is around $0.105.

Over 50% of DOGE holders remain in profit

Even though Dogecoin prices have been falling, more than two-thirds (69%) of its holders continue to make a profit. According to data from IntoTheBlock’s In/Out of the Money chart, about 244,000 addresses with Dogecoin are currently “In the Money” at today’s price level.

A closer examination of the World Profit vs Loss graph reveals that over 72% of Dogecoin investors are currently making a profit, suggesting optimistic investor attitudes persist even amidst current market difficulties.

Although significant amassing of Dogecoin by major investors has occurred, the price of this meme-based cryptocurrency still encounters obstacles.

Nevertheless, even though about half of its owners are currently making a profit and there’s solid backing at roughly $0.105, Dogecoin might continue to show potential in the long run.

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2024-10-08 16:07