Dogecoin Miners Reserves Drop All-Time Low
The price of Dogecoin (DOGE) has remained stagnant in the $0.06 – $0.063 range since mid-August, despite occasional bullish movements in the broader crypto market. Recent on-chain data analysis reveals that the decline in Dogecoin’s price may be attributed to miners offloading their reserves. The data shows that Dogecoin miners have sold approximately 320 million DOGE between August 17 and October 5, reducing their total reserves from 4.67 billion to 4.35 billion DOGE. This selling frenzy by miners has contributed significantly to the stagnation of DOGE’s price.
Speculative Traders Have Deployed $28 Million in Fresh Capital Inflows
To counteract the bearish impact of the miners’ sell-off, speculative traders have made significant capital inflows into Dogecoin derivatives markets. The Dogecoin Open Interest has increased from $205 million on September 21 to $234 million on October 5, indicating fresh capital inflows of $29 million within the last two weeks. These inflows may explain why DOGE has maintained support at $0.06 despite intense selling pressure from miners.
DOGE Price Prediction: Further Consolidation at the $0.06 Range
Based on key indicators and data analysis, it is likely that DOGE will continue to consolidate around the $0.06 level. The actions of miners and speculative traders will play a crucial role in determining the price direction. The Global In/Out of Money Around Price (GIOM) data shows that there are significant support and resistance clusters at different price levels, with potential buyers at $0.062 and potential sellers at $0.060. If these key levels hold, DOGE may avoid a major price breakdown.
Hot Take: Will DOGE Overcome the Selling Pressure?
With Dogecoin miners offloading their reserves and speculative traders injecting fresh capital, the future of DOGE remains uncertain. While the decline in miners’ reserves puts downward pressure on price, the influx of capital from speculative traders helps maintain support levels. The battle between these two groups will ultimately determine whether DOGE can break out of its current range or experience a further decline. Keep an eye on the actions of miners and traders to gauge the future trajectory of Dogecoin.
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