Dogecoin (DOGE) Recent Uptrend Put About 85% of Addresses in Profit: Will the Meme Coin Bounce Back?

Dogecoin (DOGE) has, through its recent uptrend, put about 5.46 million Dogecoin addresses in profit, according to IntoTheBlock's data.

Dogecoin (DOGE) has, through its recent uptrend, put about 5.46 million Dogecoin addresses in profit, according to IntoTheBlock’s data. This puts more than 85% of the addresses tracked by the platform at a profit.

Analyzing the data, we discovered that 175,000 addresses, representing 2.75% of the total, are at the break-even point. Currently, only 722,720, or 11% of the total addresses, are at a loss.

Exploring the potential impact on the price, CNF analysts observed that the asset could face liquidation at a slight additional uptrend, putting DOGE in a critical zone right now. Meanwhile, some of these profitable addresses were selling at press time, forcing the price to decline by 10% in just 24 hours.

Analyzing Coinalyze data, we uncovered that $13.2 million worth of the asset has been liquidated since yesterday. Fascinatingly, $10.4 million of this liquidation came from long positions while $2.4 million came from short positions.

Regardless, DOGE still maintains its dominance as the largest meme coin, boasting of a $22 billion market cap. This is over $12 billion higher than that of Shiba Inu (SHIB), and $19 billion higher than the third-closest meme coin, Pepe (PEPE)

Could DOGE Bounce Back?

On October 31, an analyst uncovered a rare movement that positioned the asset in achieving a potential golden cross. Based on experts’ interpretation, this situation is a chart pattern where the short-term moving average (mostly the daily SMA 50) crosses above the long-term moving average (daily SMA 200) to give a bullish hint.

As indicated in the chart below, the short-term price momentum is outrunning the long-term price momentum. The last time this bullish pattern appeared was in November 2023 and November 2022. When this formation materializes, it would become the three consecutive years this signal has appeared in the same month.

Confirming this trend, a crypto expert identified as Trader Crow disclosed on X that DOGE is gearing up for a significant short-term price rally. Backing his thesis with a chart, Trader Crow pointed out some similarities in trends between the current cycle and the previous one.

According to this analyst, there was a breakout from a descending triangle pattern in the previous cycle that caused the bull run. Since then, a similar trend has been playing out for the past three years.

Commenting on the current price action, crypto analyst Bluntz also cautioned investors against premature selling. Per his research, there has been an 874-day accumulation phase.

Many will succumb to selling $doge too early, despite getting in at these low levels. This is a consequence of 874 days of accumulation, reconditioning your brain, believe in something.

Adding to this, an analyst identified as “@HovWaves” has disclosed on X that DOGE could hit $2.4. At the current price of $0.155, DOGE would have to reclaim its immediate resistance level at $0.17, $0.18, and $0.20 to stand any chance of nearing this predicted level.