Dogecoin’s market capitalization was at the $31.6 Billion level and despite a drop in trade volume in the past 24 hours, the altcoin was rallying. The price was 67% away from its ATH of $0.73.
Dogecoin Price Chart || Source: CoinGecko
Based on the price chart, DOGE has recovered from the drop below the $0.20 level following the crash of 22 June 2021. Dogecoin has a stronger base of HODLers for every market dip it, based on on-chain data from intotheblock. A statistic that supports this narrative is that despite the rise in trade volume in the past, the number of addresses sending Dogecoin was dropping.
Dogecoin sent from addresses || Source: Bitinfocharts
Though the purpose of Dogecoin is to flow freely and have higher liquidity as a global payment mechanism, HODLing has been adding value and supporting higher price points for the asset. And based on the above price chart, the number of sent from addresses for Dogecoin has dropped, supporting the narrative of an increasing number of HODLers following every dip.
It is likely that HODLers are buying the dip. DOGE was profitable for HODLers holding for a minimum of 90 days to a year, based on ROI metrics from Messari. Social volume is a key driver, the second key driver, after HODLer metrics. And based on the HODLer metrics, 69% HODLers are profitable at the current price level and the concentration by large HODLers was up to 66%.
Based on HODLer metrics from IntotheBlock, $35.82 Billion worth of large transactions have occurred in the past week and these large volume transactions are driving value for DOGE.
Social volume has dropped, and this is indicative of an upcoming price rally. So is it ideal to HODL DOGE or exit, while HODLers continue to accumulate? Based on the above metrics, it is likely that HODLing DOGE would be profitable, considering large wallet inflows have increased. However, if day traders are looking for high short-term ROI, selling DOGE for other altcoins may be the way to go.
