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According to recent on-chain data, Dogecoin is currently in an impressive position with 93% of its investors making money. Strong market sentiment is reflected in this level of profitability, which may indicate that a rally is imminent. According to the price chart, DOGE has been rising steadily since recovering from the $0.30 support level. Currently trading at about $0.34, it is getting closer to the critical resistance at $0.38 as indicated by the recent bullish momentum.
While the asset is trading above important moving averages such as the 200 EMA, it is still struggling to hold above the 50 EMA, which is a crucial level for validating bullish trends. Why are DOGE holders so profitable? A large number of investors bought the asset during its previous consolidations and bull runs, which allowed them to profit greatly during price increases. Furthermore, even during mild pullbacks the majority of addresses continue to turn a profit as shown by the historical break-even price chart.
This tenacity demonstrates Dogecoin's widespread use and comparatively steady community support. A move above the $0.38 resistance could start a new upward trend for DOGE's price action. The high level of profitability may also lead to sell-offs since short-term traders may lock in dividends.
Godfrey BenjaminThe $0.30 support level, which continues to serve as DOGE's safety net in the event of any downturns, is something that investors should closely monitor. To sum up, Dogecoin's enormous profitability creates the conditions for possible growth, but prudence is advised.
Given the asset's recent performance and robust on-chain metrics, DOGE may soon try to exit its current consolidation phase. It might open the door for another rally in 2025, if it is successful. Investors who want to successfully navigate the market should keep an eye on important resistance and support levels.
Disclaimer: The opinions expressed by our writers are their own and do not represent the views of U.Today. The financial and market information provided on U.Today is intended for informational purposes only. U.Today is not liable for any financial losses incurred while trading cryptocurrencies. Conduct your own research by contacting financial experts before making any investment decisions. We believe that all content is accurate as of the date of publication, but certain offers mentioned may no longer be available.
Yuri Molchan
Vladislav Sopov
Dan Burgin