- Dogecoin has seen significant declines over the past two weeks.
- DOGE has entered somewhat of a bear trend as a result of the declines.
Despite its mediocre price performance, Dogecoin [DOGE]the largest memecoin by market capitalization, has seen significant accumulation in recent weeks.
However, the rebound in accumulation has yet to translate into a meaningful price recovery as DOGE continues to struggle after recent declines.
Major Dogecoin holders playing the long game
According to CoinMarketCapDogecoin has lost more than 8% of its value in the past seven days, dropping its market capitalization to around $15.8 billion. The decline has eroded some of its market value, but major owners remain undeterred.
Source: IntoTheBlock
Data from InTheBlok revealed that major holders have accumulated more than 2 billion DOGE tokens in the past week, marking the largest accumulation event since January.
Based on current prices, this accumulation is estimated at approximately $200 million. This suggests that major Dogecoin investors are taking a long-term approach and betting on the memecoin’s eventual recovery.
Recent upward trends are failing to boost Dogecoin
Despite the accumulation, the price of Dogecoin has continued to decline. An analysis of the price chart shows that Dogecoin experienced a drop of over 8% on the last day of the previous month, followed by a drop of 6% at the beginning of the current month.
The downward trend continued with an additional 2% decline the following day.
Source: TradingView
Although Dogecoin recently saw a number of consecutive upward trends, these were insufficient to regain the lost price level. By the end of the most recent trading session, Dogecoin was down 2.8% and trading around $0.108. At the time of writing, it is trading slightly lower at $0.107, but has found support at the 50-day moving average, which remains strong around $0.105.
More than 50% of DOGE holders continue to make profits
Despite the continued price declines, many Dogecoin holders continue to make profits. Analysis of the IntoTheBlock chart IntoTheBlock shows that more than 69% of holders, or approximately 244,000 addresses, are still ‘In the Money’ around the current price.
Further analysis of the Global In/Out of the Money chart shows that over 72% of Dogecoin holders are currently profitable, reflecting strong investor sentiment despite recent market challenges.
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Although Dogecoin has seen record accumulations from large holders, the memecoin’s price continues to face challenges.
However, with more than 50% of holders still in profit and strong support around $0.105, Dogecoin’s long-term prospects could still be promising.
