Is the future of Dogecoin in jeopardy? If the price of DOGE hovers around the $0.745 per token level, more than 30 billion tokens will be on the verge of losing their positions.
Startling new data from crypto intelligence portal IntoTheBlock reveals that more than 100,000 Dogecoin addresses are now in a precarious situation.
Will DOGE holders weather the storm or face a potential market crash?
Dogecoin Price Fluctuation: Meme Coin’s Market Movement
Dogecoin’s current value on CoinMarketCap is $0.08028, reflecting a 24-hour increase of 1.98%. However, in the past week, the popular cryptocurrency has experienced a substantial decrease of 14%.
Investors and traders are keeping a close eye on the market to determine whether this trend will persist or if Dogecoin will see a reversal in fortune.
In a report, citing data by IntoTheBlock, some 37.2 billion DOGE were purchased in the $0.745 to $0.786 range, representing the largest of the pack near the current Dogecoin price.
The data suggests that this number represents nearly 50% of all Dogecoin purchases currently in profit, with a value of $74.38 billion DOGE.
As a result of the decline that began last Wednesday, approximately 40 billion Dogecoin has lost value compared to its initial purchase price. This volume is dispersed across over 594,000 addresses.
The profitability of a cryptocurrency depends on the price at which an investor buys and sells the asset. When the buying price is lower than the selling price, the investor earns a profit. However, if the selling price is lower than the buying price, the investor incurs a loss.
In the case of Dogecoin, if its price drops to a certain level, approximately 34 billion DOGE will become unprofitable, meaning that investors who purchased at higher prices will experience a loss.
The price level at which this will occur is not set in stone and may vary based on various factors such as market sentiment, supply and demand dynamics, and other macroeconomic factors.
DOGE total market cap currently at $11.1 billion on the daily chart at TradingView.com
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The unprofitable DOGE can lead to an increase in sell-offs, and as a result, the price could spiral downwards. This can have a domino effect on the market, causing other cryptocurrencies to also experience a decline in value.
Therefore, it is crucial for investors to monitor the market closely and make informed decisions based on the current market situation. As a result, investors need to be vigilant and take the necessary precautions to mitigate potential losses.
(The information provided here is for educational and informational purposes only. It is not intended as financial or investment advice)
-Featured image from Barcroft Media/Getty
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