Dogecoin Miners Acquire 140M DOGE in 20-Days: Will DOGE Price React?

Within the last 30 days, Ethereum and Ripple secured major nods from U.S. authorities, while Solana ETFs launched in Brazil. Additionally, Russia legalizing crypto mining has boosted the market, lifting a prior ban on the activity. Consequently, investors have shifted their focus toward mega-cap altcoins that had been maligned and undervalued by regulatory uncertainty in recent years.

This shift left more informal, community-driven assets like Dogecoin struggling for traction.

Looking at the DOGEUSD daily chart above, we observe how DOGE struggled to break past the $0.10 resistance since August 14. However, Dogecoin price rose as high as $0.11 in the morning GMT trading hours on August 20, reflecting a remarkable 7.8% rally within 24 hours.

With DOGE price poised for another leg-up, on-chain data trends suggest the rally is being predominantly driven by increased bullish sentiment among miners.

Miners Acquire Another 140M DOGE in August

Recent on-chain trends indicate that Russia legalizing crypto has led to increased interest in Proof of Work (PoW) coins. Dogecoin has also benefited from this PoW demand surge.

The miner reserves chart, which shows the cumulative number of coins controlled by recognized miners and mining pools, supports this narrative.

As the chart above illustrates, at the start of August, Dogecoin miners held a total of 4.36 billion DOGE in their reserves. That figure has now ballooned to 4.5 billion as of August 20.

Since Russia legalized crypto mining in early June, Dogecoin miners have responded positively, accumulating 140 million DOGE in the last 20 days. Valued at current prices, Dogecoin miners have added $14 million to their holdings.

Historically, increased miner accumulation has often preceded price rallies, as it signals confidence in the asset’s future value. Additionally, such accumulation reduces the available supply on exchanges, potentially driving prices higher.

DOGE Price Forecast: $0.15 Target in Focus

The recent breakout above the $0.10 resistance level is a positive sign, but the path to $0.15 will not be without challenges.

Firstly, the Average Directional Index (ADX) at 25.69 indicates that the current trend is strengthening, but it is not yet strong enough to confirm a sustained rally.

More so, the Donchian Channel shows that the current price is nearing the upper band at $0.12307, a level that could act as significant resistance.

If Dogecoin fails to break this level, we could see a pullback towards the mid-range support around $0.10179.

For Dogecoin price to reach the $0.15 target, it must maintain its momentum and break through the $0.12307 resistance convincingly. Failing to do so could see the price consolidate or even retrace back to the $0.08 support level, which coincides with the lower band of the Donchian Channel.

In summary, while the recent miner accumulation and price breakout are promising, Dogecoin still faces critical resistance levels that must be overcome to sustain its upward trajectory.