According to IntoTheBlock data, miners’ Dogecoin reserves have decreased significantly since the end of March. Meanwhile, DOGE is hovering above a key price point after about a month of consistent decline. According to analyst Aaryamann Shrivastava, DOGE slumped to a two-month low, triggering significant activity among a select group. However, their impact on the big picture is rather negligible.
Dogecoin miners cash out
According to crypto intelligence platform IntoTheBlock, Dogecoin miners’ reserves have decreased significantly since the end of March. We are looking at March, as this is the period when the largest amount of DOGE in miners’ reserves has ever been recorded for 2023. They are currently worth 4.53 billion DOGE. That is 240 million less than a month and a half ago. In dollar terms, at the current price of Dogecoin, it is $514.63 million and $45.69 million, respectively.
That number may seem small when compared to the market cap of Dogecoin, which CoinMarketCap has estimated at more than $10 billion. However, DOGE’s 240 million represent 5% of all miners’ reserves. This means that the dumping rate is above average.
Interestingly, the miners’ sales started a few days before DOGE rose more than 20% on April 3. To take a closer look, miners sold 80 million DOGE a week ago. A week later it turns out that they only sold 10 million less than that. At the same time, the price rose by 45% during this time. Then it fell by 21%. So, it is possible to say that Dogecoin miners do not benefit from this pumping.
DOGE has taken a step back, what’s its next move?
Dogecoin price has dropped 20.89% since April 19. After that, it fell as low as $0.070 in the last four days. The meme coin grazed two-month lows before trading at $0.073 at the time of writing.
This recovery came after a spike in the altcoin’s rate of change, which is DOGE’s rate of change. High speed usually indicates an active user base. Also, this rate is significantly higher when it comes to Dogecoin. Meanwhile, since May 11, the change in addresses has increased by 477% from 3.2 to 20.8.
Much of this is the result of increased activity among smaller wallet holders, which are large numbers of investors. These groups of wallets recorded an increase in their balances, indicating that they were accumulating. Thus, it added more than 600,000 DOGEs collectively last week. However, regarding the meme coin, this is relatively unimportant. The accumulation is worth just over $42,000 and has no effect on price action.
The change in Dogecoin price can be expected when volatility is observed in large transactions valued at more than $100,000. Because that would be a sign of whale activity. As for what to expect from the forward price action, traders need to be a little cautious as there are no clear signs of recovery.
The Moving Average Convergence Divergence (MACD) appears to be on the verge of a bullish crossover as the MACD line (blue) approaches crossing over the signal line (red). But the Relative Strength Index (RSI) is still in bearish territory below the neutral mark at 50.0. Therefore, the next target in the short term should be the upside to $0.078. It is possible that this level turned into a support base by coinciding with the 50-day Exponential Moving Average (EMA) to provide some strength to the potential recovery.
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