finbold.com
As the 2022 cryptocurrency market carnage continues to play out, most investors in meme coin Dogecoin (DOGE) are still making money. Notably, DOGE’s popularity and gains have slumped significantly, with the token unable to replicate the gains of 2021.
In particular, as of December 27, about 54% of DOGE holders were in profit based on the token’s price at the time of publishing. Another 43% of the current Dogecoin holders are in loss, while 3% have broken even, according to IntoTheBlock data.
Elsewhere, while most Dogecoin holders are in profit, a significant share of investors in the eighth-ranked cryptocurrency by market capitalization have held the asset for over one year at 70%. At the same time, 26% are investors between one and 12 months. Only 4% have held the crypto for less than a month.
Dogecoin price analysis
By press time, Dogecoin was trading at $0.074, having corrected by almost 2% in the last 24 hours. On the weekly chart, the decentralized finance (DeFi) asset has dropped by less than 0.1% as the token consolidated in line with the general market. Furthermore, the asset has a market cap of $9.87 billion.
Despite Dogecoin trading mainly in the red zone, the meme coin has recorded glimpses of rallying triggered by input from Tesla (NASDAQ: TSLA) CEO Elon Musk. Notably, Musk’s regular commentary on Twitter (NYSE: TWTR) expressing support for DOGE has acted as a critical catalyst for the asset price rally.
Part of the recent rally was triggered after Musk officially acquired Twitter with speculations that the token might be incorporated as a payment system on the social media platform.
What next for DOGE?
Overall, investors will be looking for possible increased adoption news and increased network development. For instance, DOGE rallied momentarily after reports emerged that Musk and Ethereum (ETH) founder Vitalik Buterin might be working to improve the digital asset.
In the meantime, DOGE has been hammered by overall market conditions resulting from events like the FTX crypto exchange collapse.
As 2022 ends, DOGE investors will be hoping the asset bottoms and embark on a new rally. However, Dogecoin fans will likely encounter more consolidations considering that the machine learning algorithm at PricePredictions projects that DOGE might trade at $0.079 on January 1, 2023.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.