Dogecoin may be accumulating with 20% of wallets holding unrealized profits

• Dogecoin wallets sitting on unrealized profits climbed to 20.73%, analyst noted a strong accumulation on the monthly chart.

• DOGE price range between $0.05 and $0.093 is likely an accumulation phase for the next bullish breakout in the meme coin.

• Crypto analyst Poseidon has set a target of $0.18 for DOGE, based on the weekly price chart.

After reviewing the monthly, weekly, and daily charts, a pseudonymous technical analyst named Poseidon decided that the Dogecoin price is most likely in an accumulation phase. According to IntoTheBlock's on-chain data, 20.73% of DOGE wallet holders are profitable at the current price level.

Dogecoin is currently in the accumulation phase according to Poseidon

Poseidon, a technical analyst, noticed a significant accumulation in DOGE. Poseidon views the range between $0.093 and $0.05 to be the important range for the meme currency. DOGE's price fluctuation in this range is most likely the accumulation phase for the following stage in the meme coin's trajectory. 

Poseidon shows that, when compared to Layer 1 and other assets in the crypto ecosystem, Dogecoin has showed strong accumulation despite its sideways price movement. On the monthly price chart, the analyst identifies the $0.048 level as critical for DOGE. According to Poseidon's study, every DOGE token purchased between $0.025 and $0.010 is considered inexpensive and is likely to deliver 10x gains in the long run. 

DOGE/USDT monthly price chart on Binance

On-chain metric Global In/Out of the Money (GIOM) data from crypto intelligence tracker IntoTheBlock confirms Poseidon's theory of long-term price gains in DOGE. The analyst price target for DOGE is $0.18. 

DOGE wallets with unrealized earnings are capped to 20%

The GIOM indicator evaluates the volume or percentage of wallets holding the token that are currently sitting on unrealized earnings or losses. If the average price at which these wallets acquired the asset is less than the current price, the wallet is sitting on unrealized gains; if the acquisition cost of the wallets is greater than the price of the asset, the wallet is sitting on unrealized losses.

According to the IntoTheBlock graphic, 20.73% of DOGE wallets now have unrealized earnings. Profitable wallets are more likely to participate in "profit-taking," increasing selling pressure on DOGE. However, these addresses are currently limited to 20.73%, compared to 73.72% that are submerged. 

DOGE wallet addresses that are profitable or submerged

As long as the number of wallets incurring unrealized losses outweighs the number of profitable wallets, DOGE is more likely to sustain its recovery and resume its upward trajectory. DOGE is currently trading at $0.063 on Binance at the time of writing.