The meme-inspired Dogecoin (DOGE) has seen its price climb in the last week in tandem with the broader cryptocurrency market.
According to on-chain metrics, prominent crypto trading expert Ali Martinez has said that the original meme currency has the potential to rise to $0.21 without putting up much effort.
On the other hand, Martinez pointed out that the token may see some resistance around the level due to the number of holders who may currently be at a loss.
“On-chain data shows that Dogecoin could be free to advance towards $0.21 with no hesitation. But around this price point, DOGE could face stiff resistance as more than 631,000 addresses holding over 48 billion DOGE are underwater.”
Noteworthy is that more than 631,000 addresses are now in the red, representing a total amount of 48 billion DOGE. If the asset were to return to profitability to those holders, we might witness a sell-off, depending on the market momentum around the asset at that point in time.
Dogecoin chart analysis
Currently, DOGE is trading at $0.1458, up 1.45% on the day and 7.93% in the last week, according to CoinMarketCap data.
The total market capitalization of Dogecoin stands at $19.3 billion at the time of publication.
With the Proof-of-Stake (PoS) network becoming increasingly adopted among major cryptocurrencies, with more and more are actively transitioning to it, DOGE may benefit from the shift with the help of Ethereum founder Vitalik Buterin who is assisting.
Certainly, Ethereum’s price has benefitted in recent weeks, partly spurred on by Ethereum’s shift to Proof-of-Stake, with ETH even recently labeled ‘the collateral of the internet,’ by commodity expert Mike McGlone.
Whether the eventual shift will be able to see the asset climb from its current price to reach $0.50 in 2022, as discussed in our Dogecoin price prediction, only time will tell.
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