Lookonchain, a data proviDogeder, shared the analysis with its followers on Twitter, noting that out of the top 50 addresses holding DOGE, 21 million DOGE has been sold in the last month. This represents a significant reduction in DOGE held by primary addresses. However, it is worth noting that these holders are still in profit by around $3 million.
Looking at the data week-on-week, holders have reduced their positions by 761 million DOGE, worth around $110 million. However, compared to yesterday, these same addresses have increased their holdings by 484 million DOGE ($70 million).
Clearly, those holding large amounts of Dogecoin are trimming their positions but still holding onto most of their coins. This could suggest that they believe there is still more upside potential for the meme-based cryptocurrency.
At the time of writing, Dogecoin is trading at $0.157, up 24% in the last 24 hours. The cryptocurrency has recently seen a strong rally, propelled by social media hype and high-profile endorsements.
The study also found that these whales have reduced their holdings by 761 million DOGE ($110 million) compared to a week ago. However, they have increased their holdings by 484 million DOGE ($70 million) compared to yesterday.
This suggests that the recent price rally has led many holders to take profits. 63% of all Dogecoin holders are now in profit, according to Lookonchain.
The study comes as the price of Dogecoin surged 100% in the last week of October, bringing many investors into profit. This price surge has been attributed to various factors, including increasing interest from major investors and raising cryptocurrency awareness.
Despite this, the data from Lookonchain shows that a growing number of Dogecoin holders are now in profit, and this is likely to continue as the price continues to rise. With the recent surge in price, we could see even more investors entering the market and driving the price up even further.
The MACD indicator on the daily chart is currently in bullish territory and suggests that the price could continue to rise in the short term. However, the RSI is close to overbought levels, which could lead to a pullback in the coming days.
Looking at the longer-term picture, it seems likely that Dogecoin will continue to rise as more investors enter the market and push the price up. However, it is essential to remember that prices can fall and grow, and any investment should be made carefully.
Conclusion
The data from Lookonchain shows that a growing number of Dogecoin holders are now in profit, and this is likely to continue as the price continues to rise. With the recent surge in price, we could see even more investors entering the market and driving the price up even further.
