Dogecoin profits decline: Analyzing trends and trader sentiments
- Dogecoin has struggled to recover fully after a fall two weeks ago.
- The total supply has further declined as the price struggles.
Recently, Dogecoin [DOGE] has experienced a less favorable price trend, leading to a decline in the number of tokens in a profitable state. Nevertheless, despite the downtrend, the derivative metric indicates buyer aggression.
Dogecoin profit declines
An analysis of Dogecoin’s supply reveals a decline in profit at the start of the year, following a relatively stable trend throughout December.
The profit remained mostly constant, with around 103 billion tokens in profit. However, it dipped to around 79 billion earlier in the year, according to Santiment.
Although there were efforts to rebound, the number could not surpass the 100 billion mark.
Currently, there is a slight decrease, bringing the count of DOGE in profit to around 78 billion as of the latest update. Given the current range, this translates to a profit percentage of around 59% of the total supply.
DOGE remains rooted in the bear zone
Examining the daily timeframe chart of Dogecoin showed a series of fluctuations between gains and losses since its significant decline on 12th January.
Notably, the losses have outweighed the gains. By the close of trading on 19th January, DOGE was valued at around $0.078, marking a slight increase of about 0.6%.
At the time of this update, it sustained a slight profit of around 0.2%, maintaining the $0.078 price range.
The trend depicted by its short moving average (yellow line) indicates a bearish trajectory. The yellow line was positioned above the price, signaling a less favorable trend.
Additionally, the Relative Strength Index (RSI) has remained below the neutral line, struggling to surpass it. As of the latest data, the RSI line barely touched 40, showing the prevailing strong bearish trend.
Dogecoin buyers get more aggressive
While the overall price trends may not be particularly impressive, an intriguing development is evident on the derivative side among traders.
Examination of the Coinglass funding rate chart showed a consistent rate of about 0.01% since around 4th January.
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However, at the time of this update, there has been a notable surge in the funding rate, reaching around 0.05%. This uptick suggests an increased level of aggression among buyers.
Such an escalation often signifies a wager by traders anticipating a potential rise in prices.