Dogecoin’s Profit Metrics Hit Two-Year Low
Dogecoin enthusiasts and investors are closely monitoring developments around the meme-based cryptocurrency as its profits metric has hit its lowest levels in two years. With only 55.53% of DOGE addresses reported as in profit, questions about whether a market bottom is approaching have started circulating.
Opportunity for Savvy Investors?
Historically, low profit metrics often indicate seller exhaustion in the crypto market, typically signaling a potential opportunity for patient buyers. However, trends suggest that timing remains key. Previous cycles like the bear market of October 2023 witnessed a lower percentage of profitable addresses, hitting a record 44.88%, indicating some room for further corrections before long-term investors jump in.
Adding to this, the Coin Days Destroyed (CDD) metric has not yet shown significant spikes, which often correlate with market capitulations and forced selling—the hallmarks of a potential bottom.
What Do Metrics Reveal About Current Risks?
Another metric, the Realized Price, continues to sound caution. Dogecoin’s price is currently below its realized price of $0.146 and has recently retested this level as resistance. A similar pattern from 2021-2022 saw DOGE struggle to reclaim its realized price, leading to further price declines. Could history repeat itself?
Should Investors Buy Dogecoin Now?
For long-term holders aiming to hold DOGE for years, it may be wise to wait for clearer market signals. Metrics like profit levels, CDD spikes, and the realized price resistance suggest the market hasn’t yet fully bottomed out. While short-term traders may capitalize on minor rallies, long-term investors must remain cautious.
If you’re an investor preparing for the market bottom, consider diversifying your strategy with tools like the Ledger Nano X Hardware Wallet. This hardware wallet securely stores your cryptocurrencies, ensuring that your investments are safe, even during volatile times.
