The price of Dogecoin (DOGE) is still stuck in the $0.060–$0.065 region, unable to take advantage of the recent surge in the cryptocurrency market that occurred in late September.
The current amount of Dogecoin Miners’ reserves, which is 4.35 billion coins, is the lowest since the original memecoin was introduced in 2013.
The DOGE spot price performance has been going rather flat over the last month, but the bears are well-positioned to take the market by storm.
Dogecoin’s (DOGE) price has stayed unchanged around the $0.06 area, missing out on the short-lived spike in the cryptocurrency market at the end of September.
Using on-chain research, it is possible to determine how the Dogecoin miners, who have been selling their holdings at an unprecedented rate, can induce a DOGE price collapse.
Is DOGE Price in Jeopardy as Miner Reserves Hit Historic Low?,Is DOGE Price in Jeopardy as Miner Reserves Hit Historic Low?
Dogecoin Miners Use Up All of Their Reserves amid the Extended Price Stall. Since mid-August, Dogecoin’s price has been rather stable, ranging between $0.06 and $0.063. Despite recent optimistic optimism in the wider crypto markets, this consolidation has continued.
A deeper examination of on-chain data trends, however, indicates that this protracted price standstill could be caused by the activities of Dogecoin miners.
As of October 5, the reserves held by Dogecoin miners have decreased dramatically from 4.67 billion DOGE on August 17 to 4.35 billion DOGE, according to latest data.
Reserves for Dogecoin Miners (DOGE)
This decrease in the reserves of Dogecoin owned by miners suggests that between August 17 and October 5, they sold 320 million DOGE.
With Dogecoin now trading at $0.06 per unit, this corresponds to almost $53 million taken out of miners’ wallets.
Such a large drop in miners’ reserves usually means that these node validators are losing a large amount of their block rewards.
In the upcoming weeks, the price of Dogecoin may decline as fresh mined enters the market.
Dogecoin Price Forecast: Potential Drop Below $0.06
Data from the daily technical analysis suggests that a reversal below $0.060 is conceivable. But as the chart below shows, the $0.059 mark may offer strong support for the price of DOGE.
Should the bears push for a downswing as anticipated, that might spark a further decline towards 0.050.
Is DOGE Price in Jeopardy as Miner Reserves Hit Historic Low?,Is DOGE Price in Jeopardy as Miner Reserves Hit Historic Low?,Is DOGE Price in Jeopardy as Miner Reserves Hit Historic Low?