93% Dogecoin (DOGE) Investors in Profit: Recipe for Rally?

Dogecoin Eyes Rally as Investors Remain Highly Profitable

Cover image: U.Today

On-chain data reveals Dogecoin's impressive position, with 93% of investors reaping profits. This reflects a strong market sentiment, hinting at a potential rally.

Since recovering from $0.30 support, DOGE has witnessed consistent growth. Currently trading around $0.34, it approaches a crucial resistance at $0.38. Bullish momentum sustains its upward trajectory.

Despite trading above the 200 EMA, DOGE faces resistance at the 50 EMA, a threshold crucial for validating bullish trends.

Profitable Dogecoin Holders

Investors who acquired DOGE during previous consolidations and rallies have profited significantly from price increases. Even amidst downturns, most addresses remain profitable, as evidenced by the historical break-even price chart.

This resilience signifies Dogecoin's widespread adoption and unwavering community support. A breakout above the $0.38 resistance could trigger an extended uptrend.

However, the high profitability may incentivize short-term traders to liquidate their holdings.

Key Support and Resistance

Investors should monitor the $0.30 support level, acting as a safety net for DOGE during downturns.

Potential Growth and Caution

Dogecoin's strong profitability paves the way for potential growth, but caution is warranted. Its recent performance and on-chain metrics suggest a possible exit from its consolidation phase. A successful breakout could usher in another rally in 2025.

Navigating the Market

Investors should closely monitor key resistance and support levels to navigate the market effectively.