Dogecoin Miners Increasing Holdings, Potential Impact on Price Action
Over the last 30 trading days, Dogecoin miners have significantly increased their holdings. This development raises questions about potential price action in the market.
Similar to other popular memecoins like PEPE and Shiba Inu (SHIB), Dogecoin (DOGE) has experienced a decline in its price performance over the past month. However, the miners utilizing the Proof of Work algorithm on the Doge network have shown a relatively positive outlook.
Dogecoin Miners Accumulate 90 Million DOGE in One Month
Despite a 15% decline in DOGE price since August 8, Dogecoin miners have been actively adding to their reserves. Data from IntoTheBlock reveals that miners held 4.29 billion coins on August 8, and their current balance has now reached 4.38 billion DOGE after a month.
In contrast, the bearish sentiment in the memecoin market may lead to a potential downward trend towards $0.05. However, if this occurs, the 43,000 holders who purchased 928.4 million DOGE at an average price of $0.061 could create a strong buy-wall.
On the other hand, if the challenges faced by the industry worsen, DOGE bears could break the support level and move towards $0.05.
Hot Take: The Impact of Dogecoin Miners’ Accumulation on Price Action
The increasing holdings of Dogecoin miners over the past month could have significant implications for the market. While the price of DOGE has experienced a decline, the accumulation by miners suggests a level of confidence in the cryptocurrency. This could potentially result in a stabilizing effect on the price or even a reversal of the downward trend. However, it’s important to monitor the overall market conditions and industry challenges that could impact the future of Dogecoin.
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