Dogecoin (DOGE) Miners Reserves Drops to Historic Low of 4.35B — Is DOGE Price in Jeopardy?

Key Insights:

• Dogecoin (DOGE) price remains rooted at the narrow range of $0.060 – $0.065 range, failing to capitalize on the recent crypto market rally in late September.
• Dogecoin Miners’ reserves now sit at 4.35 billion coins, the lowest balance since the pioneer memecoin was launched in 2013. 
• While DOGE spot price performance trending relatively flat for the past month, the bears are in a prime position to seize control of the market. 

The price of Dogecoin (DOGE) has remained stagnant at the $0.06 range, failing to capitalize on the brief cryptocurrency market rally in late September.

On-chain analysis examines how the Dogecoin miners, who have been withdrawing their holdings at an unprecedented rate, could potentially force a DOGE’s price breakdown. 

Dogecoin Miners Deplete Reserves Amid Prolonged Price Stagnation.

The price of Dogecoin has been rather stagnant, hovering between $0.06 and $0.063 since mid-August. This consolidation has persisted despite recent bullish sentiment in the broader crypto markets.

However, a closer look at on-chain data trends suggests that the actions of Dogecoin miners may be responsible for this prolonged price stagnation.

According to recent data, Dogecoin miners have significantly reduced their reserves from 4.67 billion DOGE on August 17 to 4.35 billion DOGE as of October 5.

This reduction in miner-held Dogecoin reserves implies that they have sold 320 million DOGE between August 17 and October 5. 

At the current market price of $0.06 per DOGE, this translates to roughly $53 million worth of Dogecoin withdrawn from miners’ wallets.

Typically, such a substantial decrease in miners’ reserves indicates that these node validators are liquidating a significant portion of their block rewards. 

With newly-minted hitting the markets, this could put downward pressure on Dogecoin price in the coming weeks. 

Dogecoin Price Prediction: Possible Downswing Below $0.06

From the daily technical analysis data points towards a possible reversal below $0.060. However, the chart below illustrates that the $0.059 level could pose a major support for DOGE price.

If the bears force a downswing as predicted, it could catalyze a larger drop toward 0.050

Conversely, other influential stakeholders and market participants could counteract the bearish miners’ actions. In that case, $0.067 will be the resistance territory to beat. But if the resistance sell-wall caves, DOGE could eventually reclaim $0.07.