Why Dogecoin Price Could Reach $0.15 as Russia Legalizes Crypto Mining

Dogecoin Price Analysis

Dogecoin price breached the $0.10 level on Aug 9, marking a 32.25% rebound from the weekly low recorded on Aug 5. On-chain data trends suggest that DOGE miners could further influence price action after Russia’s latest announcement.

DOGE Price Reclaims $0.10 After Russia Announcement

Dogecoin started the week on a bearish note, plunging on August 5, with a crash that saw prices drop by over 42% from the previous week. However, the narrative quickly changed as the cryptocurrency market saw an influx of bullish catalysts.

Among these were significant institutional inflows into cryptocurrency ETFs, which provided a much-needed boost in market sentiment.

Adding to this, the $125 million fine imposed on Ripple by the SEC had a ripple effect across the crypto market, raising hopes that regulatory clarity might soon follow for other cryptocurrencies, including DOGE.

Another major catalyst that lifted DOGE prices was Russia’s decision to legalize crypto mining.

This announcement, which came on August 6, provided a strong bullish signal for the market. DOGE rebounded sharply, reclaiming the $0.10 level by August 9, a significant milestone as it represented a 32.25% increase from its recent lows. The upward price movement in the last four days highlights the positive sentiment surrounding DOGE as investors and miners respond to these recent developments.

As the price hovers above $0.10, the recent uptrend could already be attributed to the activities observed among Dogecoin miners. The legal framework in Russia might further encourage miners to hold onto their DOGE, expecting higher prices in the near future.

Miners Acquired 700M DOGE During Market Crash

During the recent market downturn, Dogecoin’s maintain steady support around $0.7, largely due to resilence shown by miners. On-chain data shows that DOGE miners significantly reduced their selling pressure during the market crash.

From August 4 to August 8, Dogecoin miner reserves increased from 4.34 billion DOGE to 4.41 billion DOGE. Miner reserves refer to the amount of DOGE held by mining pools that have not yet been sold on the open market.

This accumulation signals a strong belief in the potential for future price appreciation, as miners are choosing to hold rather than sell their coins at current prices.

This increase in reserves is a bullish signal, as it indicates that miners expect higher prices in the future. The reduction in selling pressure combined with the accumulation of DOGE by miners suggests that a potential upward price movement could be on the horizon.

DOGE Price Forecast: More Consolidation Before $0.15 Breakout

Dogecoin’s recent price action suggests that more consolidation is likely before a potential breakout to $0.15.

The price is currently facing resistance around the $0.1120 level, which aligns with the upper boundary of the Donchian Channel. A breakout above this level could signal the start of a new bullish phase, with the next significant resistance at $0.1436.

On the downside, support is found at the $0.0805 level, corresponding with the lower boundary of the Donchian Channel. The Balance of Power (BOP) indicator shows a negative value, suggesting that bears still hold some control, but the overall trend remains bullish.

If DOGE can consolidate above $0.10 in the coming days, it could build the momentum needed for a breakout. Traders should watch for a close above $0.1120 as a confirmation of bullish strength, potentially driving the price toward the $0.15 target in the short term.