Dogecoin (DOGE) has defied market expectations, with a recent surge in wallet addresses indicating a growing interest in the meme-inspired cryptocurrency. Despite the speculative nature of DOGE, a remarkable 85% of wallet addresses are currently in profit, highlighting the resilience of the token in the face of market volatility.
Reluctance to Sell Despite Profitability
Examining the blockchain data from IntoTheBlock, a useful tool for crypto analysis, reveals that approximately 85% of Dogecoin addresses are currently showing profits.
One of the most intriguing aspects of Dogecoin’s current scenario is the hesitancy among holders to sell their tokens, even as profits soar. This collective reluctance suggests a strong bullish sentiment, with investors seemingly confident in Dogecoin’s long-term potential.
The notable trend of increased withdrawals from cryptocurrency exchanges further evidences this sentiment. Over the last seven days, exchanges have witnessed a net withdrawal of 110 million more DOGE tokens than deposits, indicating holders prefer to move their tokens to private wallets rather than sell them.
This behaviour is typically associated with investors who want to hold onto their assets for an extended period rather than capitalize on short-term gains.
Despite the overall bullish sentiment surrounding Dogecoin, the network has experienced a slight downturn in activity. While there has been robust growth in the number of DOGE addresses, there has been a recent decline in network activity, including a decrease in the creation of new addresses and the proportion of active addresses.
This trend suggests that while more investors enter the Dogecoin ecosystem, there is currently less activity within the network. Additionally, there has been an uptick in the number of addresses devoid of DOGE balances, indicating a possible shift in investor behaviour or strategy.
Ownership Distribution and Investor Profile
In terms of ownership distribution, IntotheBlock data shows that a significant proportion of Dogecoin ownership is concentrated among a select few major investors. Approximately 77 entities hold holdings ranging from 0.1% to 1% of the total tokens, representing around 21.3% of the overall supply.
Furthermore, nine notable “whale addresses” collectively harbour almost 42.5% of all Dogecoins, each holding more than 1% of the available tokens. This distribution highlights the significant influence that a small number of investors can have on the Dogecoin market.
Myles G, a popular crypto trader, has boldly predicted Dogecoin’s price, suggesting it could reach $0.26 by April 20. This forecast, shared with his 15,000 followers on X, represents a 34% increase and aligns with the “4/20” meme coin celebration. While such predictions should be taken cautiously, Myles G’s forecast will be closely watched in the coming days.
