Dogecoin Miners Losing Faith as They Sell $53 Million Worth of Coins
Interest in Dogecoin (DOGE) has been on the decline, and recent data suggests that even miners are losing faith in the meme coin. Between August and October, Dogecoin miner reserves dropped from 4.67 billion DOGE to 4.35 billion DOGE, indicating that miners are beginning to sell their holdings. This is significant because miners are some of the largest holders of DOGE, so their selling can have a negative impact on the cryptocurrency.
Miners Sell $53 Million Worth of DOGE
According to data from IntoTheBlock, DOGE miners have sold around $53 million worth of tokens in less than two months. This substantial amount suggests that miners are not optimistic about the future price of DOGE. Selling such a large number of coins at low prices puts further downward pressure on the coin’s price, contributing to the bearish trend.
Miners Selling at Low Prices
Miners typically wait for better prices before selling their holdings to ensure they can cover their costs and realize gains from mining activities. However, the fact that miners are selling a large number of coins at low prices suggests that they don’t anticipate the price of DOGE going up anytime soon. This selling pressure further drives down the coin’s price.
Should You Sell Your DOGE Holdings?
The period of DOGE selling by miners was between August 17 and October 5, which could indicate that they are done selling. If this is the case, the downtrend in DOGE’s price may not continue. However, if miners decide to continue selling, it could have a significant impact on the coin’s price.
As reported by NewsBTC, Dogecoin is already facing bearish headwinds as daily active addresses decline. Daily transactions fell to 38,000 on Sunday, a drop of over 98% from its peak in May. Additionally, whales have also been selling their DOGE holdings, contributing to the decline in price.
If miners and whales continue to sell, DOGE could break below the $0.06 support level in the near future.
Hot Take: Miners’ Selling Indicates Bearish Trend for Dogecoin
The recent data showing Dogecoin miners selling off millions of coins suggests a lack of faith in the cryptocurrency and a bearish outlook for its future price. This significant decrease in miner reserves can have a negative impact on DOGE’s value as it adds to the selling pressure in the market. Additionally, the decline in daily active addresses and the selling activity of whales further contribute to the downward trend.
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