Dogecoin Price Forecast: Miners Acquire 300,000,000 DOGE to Bet on Trump Win

Dogecoin Price Analysis: 

Dogecoin price rose a 5-month peak of $0.19 on Tuesday Oct 29, before retracing 11% to close the week at $0.17. On-chain data shows that DOGE miners have remained in accumulation mode since Elon Musk mentioned Dogecoin during Donald Trump campaigns in mid-October.

Dogecoin Settles at $0.16 as Bulls Take Early Profits

Despite a double-digit correction phase this week, Dogecoin price closed October 2024 with gains in excess of 40%.  DOGE unexpected rollercoaster ride in October began around October 17, when Billionaire entrepreneur Elon Musk first mention Dogecoin at a Donald Trump rally in Pennsylvania.

Since Trump’s appearance at the Bitcoin 2024 Conference in late-July, cryptocurrencies have become a major theme in Trump’s rally. Given Elon Musk’s historical affinity to the Dogecoin community, the DOGE mentions sought to enhance Trump’s popularity among crypto enthusiasts, inadvertently attracting bull traders’ attention.

While the crypto sector had entered a major bullish reversal after bullish US CPI inflation report released on Oct 10, Dogecoin raced ahead of the market trends after Elon Musk made initial bullish DOGE comments on Oct 17.

Between October 17, and October 29, Dogecoin decoupled from the broader memecoin market trends, scoring 49.3% gains within 11-days, according to DOGEUSD daily chart depicted above.

DOGE price has since retraced 11% from its 5-month peak of $0.19 to hit $0.16 at the time of writing, signaling that many bull traders opted to take profits, as markets cooled towards the end of October.

Miners acquired 300M DOGE in the last 30-days

However, looking beyond the price action, on-chain data trends suggest key stakeholders within the Dogecoin community are still accumulation mode, likely holding out for another leg-up if Trump wins with elections on Nov 5.

The IntoTheBlock Miner Reserves chart below tracks the real-time DOGE balances held by recognized Dogecoin miners and mining pools. This provide real-time insights into miners’ trading sentiment.

The chart above shows that Dogecoin miners held 6.1 billion DOGE in their cumulative balances at close of Sept 30. As the Dogecoin mentions rang out at Trump rallies in October, the miners began accumulating their block rewards, add to the bullish market sentiment.

The latest data shows that Dogecoin miners reserves increased to 6.4 billion DOGE as of Nov 1. This reflects that the DOGE miners have acquired 300 million DOGE worth approximately $45.8 million over the past month.

Considering that DOGE’s current price is trending 22% higher than the 30-day Simple Moving Average (SMA), miners that acquired DOGE over the last 30 days are holding $10 million unrealized profits at the time of publication.

With Trump leading the crypto betting polls, market watchers anticipate another leg-up for DOGE price if the Democrat candidate wins the election on Nov 5.

Dogecoin miners accumulating their block rewards over the past month, sends two vital bullish signals.

Firstly when miners hold their block rewards with millions of unrealized profits at stake, it shows widespread expectations among key stakeholders that prices could rise further in the near-term.

More so, the 300 million DOGE accumulated effectively reduces the number of newly-mined coins entering the market supply, clearing the path for rapid price upswings during periods of high-demand.

Dogecoin Price Forecast: Trump Win Could Trigger Flash Rally to $0.20

Dogecoin price holding firm above the $0.16 support amid widespread profit-taking signals potential for another upward surge, especially if a Trump victory materializes.

According to the Donchian Channels on the DOGEUSD daily chart, the recent rally tested the upper boundary near $0.19, which may have marginally weakened the resistance set up.

With price currently hovering around $0.16, a breakout above the $0.1795 middle line of the Donchian Channel could set the stage for another attempt at $0.20, if a Trump win sparks buying pressure as widely anticipated.

Meanwhile, the Average Directional Index (ADX) reads 37.76, indicating a strong trend that could favor bulls if it continues to rise. A Trump win on November 5 would likely provide the momentum needed to trigger a rapid breakout past $0.20.

However, should the ADX begin declining, it might signal fading strength, and DOGE could struggle to maintain above $0.16. For now, bullish sentiment among miners and positive technical indicators suggest a favorable outlook for another rally if market conditions align.