Dogecoin remains solid as profitability surpasses Bitcoin, Ethereum
Dogecoin remains a strong contender for the attention of cryptocurrency investors hunting for assets with the greatest potential. Larger assets and market leaders such as Bitcoin and Ethereum have often provided this to investors with large profit margins, but with the crypto winter, Dogecoin has seen more upside compared to its larger counterparts.
The majority of DOGE holders in profit
A bear market is a time when many digital assets plummet in price and their profitability can reach new lows. For bitcoin and Ethereum it has been a roller-coaster year where it fluctuates between the majority going into profit. This time, both cryptocurrencies are seeing a large portion of their holder base lose, but the same is not the case for Dogecoin.
When Elon Musk had taken over Twitter, it had been a trigger for the price of DOGE. The meme coin had rallied more than 100% in a matter of days, peaking at $0.15. Currently, it has lost a good portion of those gains, but at $0.08, DOGE holders are having a better time compared to investors in other major cryptocurrencies.
Data from IntoTheBlock shows that while bitcoin and Ethereum investors see less than half of their owners in losses, 57% of all DOGE owners are in profit. That goes sharply against the current trend of losses where even DOGE’s biggest competitor SHIB sees only 17% of its owners in profit at current price levels.
57% of DOGE holders in profit | Source: IntoTheBlock
The meme coin also has a large base of long-term owners with 69% of all investors holding their tokens for more than a year. The sentiment around Dogecoin is also quite bullish compared to the rest of the market due to these factors.
Will Dogecoin Repeat $0.1?
For now, even though Dogecoin is doing quite well, there is still speculation as to where the price can still go from here. A $0.1 price point isn’t far-fetched for the digital asset. However, there is still negative pressure on DOGE at this time due to the uncertainty currently surrounding Twitter.
Still, DOGE continues to stay above its 100-day moving average. This shows strong buy signals for the digital asset even at current prices. The next resistance level for Dogecoin is currently at the $0.9 level and if the buying continues, DOGE can easily test these levels.
There is also good support for DOGE at the $0.08 level which would be helpful if the bears try to retake control. Dogecoin’s ability to maintain such high profitability even through uncertain times lends credence to what billionaire Elon Musk said about the meme coin being one of the cryptocurrencies with a bright future.
Featured image from Moneycontrol, chart from TradingView.com
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