50.8% Dogecoin (DOGE) Supply in Profit, Bullish?

Cover image via U.Today

Despite recent market downturns, Glassnode data reveals that a significant portion of some crypto assets' supply remains profitable. Their on-chain analysis highlights assets with high and low percentages of their supply currently above the purchase price. Ethereum and Solana experienced the most substantial drops in unrealized profits among major cryptocurrencies, leaving a large number of holders underwater.

Dogecoin, on the other hand, showed a more moderate position, with 50.8% of its supply still profitable. "Supply in profit" refers to the coins whose current market price exceeds their acquisition cost.

Other notable assets showed the following percentages of supply in profit (with percentage point changes in parentheses):

• $BTC: 76.8% ()
• $TON: 76.7% ()
• $ONDO: 74.3% ()
• $DOGE: 50.8% ()

This "supply in profit" metric helps gauge potential market tops, as a high percentage often precedes profit-taking and potential sell-offs.

Dogecoin's 50.8% suggests a relatively neutral investor sentiment, with roughly equal numbers incentivized to hold or sell. This neither overly optimistic nor disastrous figure could indicate that the worst price drops may be over, potentially setting the stage for a price rebound. Reduced panic selling, due to half the supply remaining profitable, might also contribute to this. Further upward momentum could be fueled by positive market catalysts and increased buying pressure.

DOGE Price Rebound

Dogecoin is currently trading near $0.15, recovering from recent lows following a broader market recovery. At the time of writing, DOGE is up 6% in the last 24 hours, reaching $0.154. Bitcoin's recovery to nearly $80,000 after dipping below $75,000 on Monday triggered a broader cryptocurrency rally. Dogecoin experienced a surge of up to 13% before slightly retracting some gains.

Monday's significant cryptocurrency market downturn, including liquidations of nearly $1.4 billion in crypto-tracked futures (with some cryptocurrencies experiencing drops exceeding 20%), ultimately paved the way for a rebound as traders closed short positions and reversed overextended selling. [Further details available in the original U.Today article.]