DOGE Miners’ $200M Buying Spree Unveiled, Despite 9% Dip
The value of Dogecoin (DOGE) rose above $0.16 on June 1, recovering from a 12% decline the previous week. How will the recent actions of DOGE miners affect the ongoing rebound?
Following a 12% drop, Dogecoin’s price reached $0.16 on June 1, as buyers prevented a fall below the critical support level of $0.15. The Dogecoin community encountered a significant week, marked by the passing of Kabosu, the iconic dog featured on the DOGE logo since its inception. The introduction of the Ethereum ETF prompted meme coin traders to shift their focus to Ethereum-hosted memes like PEPE and Floki Inu (FLOKI), reducing the demand for Dogecoin for most of the week.
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Consequently, DOGE experienced a 6% decline in the final week of May, resulting in a market capitalization loss of over $1 billion. However, with the subsiding excitement around ETH ETFs, there seems to be a return of retail demand in the DOGE markets, as evidenced by the modest 3.3% surge recorded on Saturday, June 1.
Dogecoin Miners Reserves Hits $730 million
As retail demand gradually returns to the DOGE markets, on-chain data suggests that Dogecoin miners have begun accumulating the cryptocurrency.
The chart below from IntoTheBlock monitors real-time changes in reserve balances held by recognized Dogecoin mining firms, revealing that Dogecoin miners have been accumulating the cryptocurrency over the past month. By the end of May, the miners’ reserves had surged to $732.6 million from $523.8 million on May 1, indicating an increase of $208 million.
This indicates that fewer newly-mined coins are being sold on the market, alleviating potential selling pressure. Moreover, the influence of miners within the blockchain network may prompt other investors to mirror their trades during periods of neutral market sentiment.
DOGE Price Forecast: Bulls Could Target $0.20 Rebound
Considering the miners’ $208 million accumulation in May 2024, DOGE price could potentially experience a 30% rebound above the $0.20 mark in the near future. Further supporting this bullish outlook, IntoTheBlock’s GIOM data indicates that Dogecoin’s next significant resistance level is at $0.18.
The chart shows that 761,310 holders had acquired 13.5 billion DOGE at an average price of $0.179. If the majority of these holders decide to take profits early, Dogecoin’s price may struggle to break through that resistance level. However, if DOGE bulls can overcome that selling pressure, a further increase above the $0.20 level could be in store.
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Dr. Olajide Samuel juggles the demands of medical studies with a passion for cryptocurrency. A seasoned blogger, Olajide shares his vast global knowledge of the crypto space, offering insights to enthusiasts. Despite his busy schedule, his commitment to crypto remains strong, and he actively seeks ways to contribute to its future.
