What is ‘rock bottom’ for Dogecoin in the long term?

Lavina Daryanani
Source: Dogecoin Wiki

Dogecoin, the market’s largest meme-coin, has been following the footsteps of Bitcoin. Over the past week, DOGE has shed 5% of its value and has been trading in around $0.14. With the king-coin showing signs of recovery, even DOGE mas managed to start negating its losses. On the daily time window, this coin had appreciated by a percent.

Metrics sketch an optimistic outlook

Amidst the given state of the market, the addresses in profit have started reaching their saturation point. At press time it was noted that more than half the HODLers were in profits, while the remaining half were either in losses or in a no-loss, no-gain state.

Now, it should be noted that the dwindling state of the number of profitable addresses has started consolidating. In fact, over the past week, they’ve mostly remained flat. Thus, it can be inferred that short-term market participants have started leaving Dogecoin’s arena, and the market now primarily consists of HODLers.

Interestingly, whenever such a pattern has been observed in the past, the coin’s price in most cases has changed its downtrend course and set on an uptrend journey, may it be towards the mid of 2017, the beginning of 2019, or 2020.

Source: ITB

Parallelly, the coin’s network to value ratio had created a new multi-month high quite recently. Whenever this ratio is high, it can be said that the network value is outpacing the value being transferred on the network. More often than not, it represents concrete growth stages.

Although this metric has deviated from its elevated peak, it has been revolving around its highs only, which is quite healthy.

Source: Messari

As far as the fundamentals are concerned, Dogecoin has been able to put a pretty decent show up there too. As can be seen from the chart attached, the number of commits, stars, and open issues have been able to consistently maintain their high levels of late.

What it means is that developers, alongside people from the community, are putting in efforts and working on the project.

Source: ITB

In fact, Ethereum’s founder Vitalik Buterin too has been quite vocal about the project of late. Just a couple of days back, for instance, he had confirmed that Dogecoin intended to become a PoS blockchain.

Given the current ownership concentration, the NVT, and the state of the progress made on Github, DOGE’s fundamentals remain to be undeterred. So, as long as HODLers do not abandon their tokens and the developers do not give up on the project, there’s not much for Dogecoin to lose over the long term.