Dogecoin (DOGE) On-Chain Trading Signals


Dogecoin was originally released in late 2013 and is one of the oldest cryptocurrencies. It was originally released as a meme piece, inspired by the popular “doge” meme. The token remained fairly stagnant until 2021, when it gained momentum and reached new all-time highs. The price spike was mostly attributed to celebrity endorsements, including Elon Musk.

Many wonder where the future will take the price of Dogecoin. Trading signals and technical analysis can help traders make educated guesses. These techniques involve looking at a variety of trading signals, ranging from volume to more obscure metrics, such as social media presence. This practice can allow investors to see beyond the superficial and dig deeper into what is actually influencing the price of the token. Although this method is far from perfect, it can be a useful tool for those looking to invest in crypto.

Analysis of Dogecoin Chain Trading Signals

Holders earn money at current prices

This metric is a measure of which investors are currently making a profit for their investment. It measures the number of holders who bought the token below the current price. Currently, about half of DOGE holders have profited from their investment, while the other half have either broken even or lost money.

These figures show potential for improvement for DOGE. The balance could tip either way.

Concentration by large carriers

Another useful Dogecoin trading signal to consider is the amount of DOGE in the hands of large holders. Although definitions vary, large holders — whales — are investors who hold more than 1% of the total supply. Other large investors hold between 0.1% and 1% of the total supply. These types of holders currently represent approximately 66% of the circulating DOGE supply.

Large holders can often have a much greater influence on the price than retail investors. Since DOGE is majority owned by these large owners, any significant movement by these owners could potentially have a substantial impact on the price.

Price correlation with Bitcoin

Bitcoin is the original and most important cryptocurrency. For this reason, it has more stability than other cryptocurrencies. The price correlation metric displays the price of a token against Bitcoin. If the token moves exactly with Bitcoin, then it has a correlation of 1. If it moves differently from Bitcoin, then the correlation is closer to 0.

DOGE has had a correlation of around 0.75 with Bitcoin over the past 30 days. It mostly moves with Bitcoin, with some deviations. Interestingly, the correlation is lower than most altcoins because the influence of celebrity shoutouts and hype is greater for DOGE than for other cryptos. Nonetheless, looking to the future, DOGE may still move primarily with Bitcoin and the entire crypto markets. If the markets rebound strongly, chances are DOGE will go for it.

Composition of the holder by holding period

Looking at how long holders have had their tokens can provide valuable insight into communities’ views on the token. If a majority of holders have had the token for a long time, it could mean that the community is strong and believes in the project.

For DOGE, 65% of holders have held their tokens for more than a year, which could be a sign of a strong community. However, it could also be small amounts of DOGE in many wallets after the DOGE craze in 2021. Either way, the stat is interesting and could give some insight into the thoughts of the DOGE community.

Transactions over $100,000

Recently, DOGE has seen many large transactions over $100,000, likely due to a large number of DOGE whales. This activity accounts for a good portion of the 7-day volume, so it may be worth investigating the nature of these trades.

Deal demographics

The Transaction Demographics indicator is one of the most interesting Dogecoin trading signals that examines the time at which transactions take place. In the case of DOGE, just over half of all trades take place during Western trading hours, which are 10 a.m. to 10 p.m. UTC. This indicator can show that the popularity of DOGE is fairly evenly distributed across different regions of the world.

Is it a good time to buy Dogecoin?

Looking at Dogecoin through the lens of these trading signals, large investors executing large trades will most likely have the biggest impact on DOG’s price.

E. As such, it is important to keep an eye on these transactions and know whether or not they are buying or selling.

While it’s impossible to say what these great investors will do next, it can be helpful to take a look at past data to try to get some insight and predict what they might do next.

How to buy Dogecoin?

DOGE is a popular token and is available on a variety of crypto trading platforms. However, some of the best platforms that offer DOGE trading are eToro, Robinhood, and WeBull.

To get started on these platforms, go to its website, create an account and verify it, connect your bank and start trading.

  • This advertisement promotes investing in virtual cryptocurrency within the EU (by eToro Europe Ltd. and eToro UK Ltd.) and the United States (by eToro USA LLC); which is highly volatile, unregulated in most EU countries, without EU protection and unsupervised by the EU regulatory framework. Investments are subject to market risk, including loss of principal.

How does Dogecoin fit into the big picture?

Dogecoin is a meme coin with little use. Its main use is for payment. For example, you can buy Tesla products with DOGE. Other projects seek to provide much deeper utility to their users. However, if DOGE can find a way to attract new users, from its payment system to celebrity endorsements, the door is still open for the token.


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