Will Dogecoin (DOGE) Miners Trigger Major Price Action With $56M Accumulation?

Dogecoin Miners have increased their holdings significantly over the last 30 trading days. On-chain analysis explores the possibility of a major price action.

Like top-ranked memecoins like PEPE and Shiba Inu (SHIB), Dogecoin’s (DOGE) price has had a dismal performance over the past month. However, the Proof of Work miners on the Doge network have taken on a fairly positive disposition.

Dogecoin Miners Have Accumulated 90 million DOGE Over the Past Month

DOGE price is down 15% from August 8, but behind the scenes, Dogecoin miners have been beefing up their reserves. According to data from IntoTheBlock, the DOGE Miners held only 4.29 billion coins in their cumulative reserves as of August 8. And a month later, their current balances now sit at a lofty 4.38 billion DOGE.

Dogecoin (DOGE) Miners Could Trigger Price Rally | Miners’ Reserves, Sept 2023. Source: IntoTheBlock

Miners Reserves tracks real-time changes in the wallet balances of recognized miners on the Dogecoin network. When benchmarked to the current market prices, the 90 million DOGE inflows mean that the miners have accumulated coins worth $56 million over the past month. This suggests that rather than sell, the miners would rather HODL in anticipation of a major price action.

Considering Elon Musk’s well-documented support of Dogecoin, the recent “money transmitter license” acquired by X (Twitter) could also further affirm the Miners’ optimism.

Long-Term Investors are Also Positioning for Future Gains

Like the Miners, bullish Dogecoin long-term holders have also increased their accumulation. According to on-chain data culled from IntoTheBlock, the number of DOGE coins controlled by long-term holders has increased significantly over the last 30-days.

As of August 8, only 45.37 billion DOGE sat in long-held wallet addresses. But as of September 7, that figure has gradually increased to 46.63 billion. The 1.26 billion DOGE added to their holdings over the past month means that Dogecoin long-term investors now control 32.50% of the total circulation supply.

Dogecoin (DOGE) Miners Could Trigger Price Rally | Coins By Time Held, Aug 2023. | Source: IntoTheBlock

In crypto, the “Long-term Holder” references wallet addresses that have held their coins unmoved for at least 1 year. Typically, increasing the percentage of coins controlled by long-term holders often inspires confidence across the community. It indicates that many existing network participants are confident in the long-term viability of the Dogecoin project.

While the recent DOGE price performance has been underwhelming, these critical factors could trigger a price rally when the market sentiment flips.

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DOGE Price Prediction: $0.08 Could the Next Target

Although the prevailing memecoin market sentiment is still largely bearish, the on-chain stats analyzed above could trigger a DOGE price rally when that changes.

The In/Out of Money Around Price (IOMAP) data, which shows the purchase price distribution of current Dogecoin holders, also validates this positive premise. It suggests that Dogecoin’s most significant resistance buy-wall is at the $0.07 territory.

As seen in the chart below, 184,600 holders had bought 23.4 billion DOGE coins at an average price of $0.072. If they book profits early, Dogecoin price could experience a pullback.

But if the miners keep accumulating and the long-term investors HODL, DOGE could rally toward $0.080 as predicted.

Dogecoin (DOGE) Price Prediction | IOMAP, August 2023, Source: IntoTheBlock

In contrast, the bearish memecoin market sentiment could trigger a downswing toward $0.05. But in that case, the 43,000 holders had bought 928.4 million DOGE at the average price of $0.061 could mount a significant buy-wall.

However, if the industry-wide headwinds intensify, DOGE bears could smash that support level and head toward $0.05.

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Disclaimer

In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions.