Though 70% of DOGE holders remain in profit, the amount is not considered too high

As AZCoin News reported, DOGE, a favorite of the wealthiest person on the planet, Elon Musk, has shown a rise of over 12%, hit an intraday high at $0.273. While it has fallen to the $0.25 zone, the on-chain data of Dogecoin price signals the network’s overall growth. Most DOGE investors are still making profits, and the average transaction size is on a substantial rise.

70% of DOGE holders in profit while transaction size is rising

While the DOGE price went up, more background activity started happening on the network. While inflows to exchanges remain low, increased trading activity can suggest only a few things: traders are moving insignificant amounts across exchanges or moving their DOGE between wallets for a variety of reasons.

While exchanges have not reported any significant outflow activity on DOGE trading pairs, the negative impact of increased trading activity could be reflected if most funds are moved to the exchange wallets.

Although 70% of Doge holders are still profitable, the amount itself is not considered too high. Previously, when Dogecoin was trading close to the previous ATH, the gain stood at 90%. Whenever the amount in profit reaches a figure close to 90%, a correction happens to the market as most traders are locking in their profits at the peak; this begins a series of liquidations, and prices fall rapidly.

though-70-of-doge-holders-remain-in-profit-the-amount-is-not-considered-too-high[1]

Source: Into The Block

While the overall on-chain indicators show a “bearish” market, they don’t go well with the current price. Psychosocial indicators also show that DOGE is currently trending and outperforming Bitcoin and Ethereum in terms of mentions.

though-70-of-doge-holders-remain-in-profit-the-amount-is-not-considered-too-high

Source: Santiment

At the time of writing, the ninth-largest cryptocurrency, DOGE, is trading at $0.248.

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