Why DOGE’s ‘in the money’ cohort may continue to grow

  • DOGE’s price increase has left a good mark on holders who stayed through the turmoil.
  • Rising Funding Rate and spot volume could reduce the number of holders in a loss.

According to IntoTheBlock, Dogecoin [DOGE] holders in profit have hit a whopping 85%. AMBCrypto analyzed the blockchain data portal and noticed that 12% were out of the money.

“Out of the money” here does not imply that the holders do not have any DOGE. Instead, it means that a small concentration was holding the meme coin at a loss at press time.

Regardless, the aforementioned growth in the number of holders making money could be attributed to DOGE’s recent performance.

Source: IntoTheBlock

It’s not a dead end yet

At press time, Dogecoin changed hands at $0.16 — a 90.18% increase in the last seven days. But this seven-day performance was not the only interesting thing related to the coin.

For the uninitiated, a large number of cryptocurrencies in the market have seen their values increase. But in recent times, some have lost that upward momentum.

For DOGE, though, that was not the case, as its value jumped by 17% in the last 24 hours. Furthermore, indications from the Mean Coin Age (MCA) indicated that DOGE had not hit a local top yet.

A high MCA reading suggests that HODLers are moving their coins from self-custody. Most times, spikes in the MCA imply that the coins are being transferred into exchanges, which could lead to selling pressure.

However, Dogecoin’s 90-day MCA fell.

Dogecoin price increase as holders continue to send the coin into cold wallets

Source: Santiment

This decline suggested that many DOGE holders are shifting from exchanges to cold wallets. In addition, this could serve as a sign of long-term conviction not to sell.

If the coin experiences less selling pressure and demand increases, the value might jump. If the value jumps, then it means the 12% who are out of money could hit the breakeven point or join the profit-making cohort.

Derivatives and spot join forces for DOGE

Another indicator that AMBCrypto looked at was the Funding Rate. Funding Rate is the cost of holding an open position in a perpetual contract.

If the Funding Rate is positive, it means that the perp price is trading at a premium compared to the spot price. On the other hand, negative funding means the perp price is trading at a discount.

According to data from Coinglass, Dogecoin’s Funding Rate had increased to 0.15% until press time.

Rising Open Interest in Dogecoin as the price continues to increase

Source: Coinglass

Read Dogecoin’s [DOGE] Price Prediction 2024-2025

In DOGE’s case, the high funding alongside the rising price action meant that longs were aggressive, and also getting rewarded for it. Also, the spot volume increased while this was happening.

Should this continue to be the case, Dogecoin’s price might key into immediate support while breaching the resistance on the upside, which would help the meme coin finally hit $0.20.

Next: Charles Hoskinson breaks silence on the Nami wallet malfunction

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