The world of cryptocurrency, often characterized by volatility and speculation, has been closely monitoring Dogecoin (DOGE) over the past month. While DOGE’s price performance may not have been stellar, there are intriguing developments taking place behind the scenes. Dogecoin miners and long-term investors have been quietly accumulating, signaling optimism and potential for a significant price action in the near future.
Dogecoin Miners’ Accumulation:
Despite a 15% drop in DOGE’s price since August 8, there’s a positive narrative developing among Dogecoin miners. Data from IntoTheBlock reveals that DOGE miners have increased their holdings by 90 million DOGE in just one month. To put this into perspective, their cumulative reserves now stand at 4.38 billion DOGE, up from 4.29 billion DOGE on August 8.
When converted to market prices, this accumulation represents a staggering $56 million worth of DOGE. Rather than selling their holdings, miners seem inclined to ‘HODL,’ a term often used in the crypto community to mean holding onto assets in anticipation of a substantial price movement.
Elon Musk’s continued support for Dogecoin and the recent acquisition of a “money transmitter license” by Twitter’s parent company, X, could be contributing to the miners’ optimism.
Long-Term Investors’ Confidence:
In addition to miners, long-term Dogecoin holders are also increasing their accumulation. According to data from IntoTheBlock, the amount of DOGE held by long-term investors has risen significantly over the past 30 days. On August 8, they held 45.37 billion DOGE, and by September 7, that figure had grown to 46.63 billion DOGE.
This increase of 1.26 billion DOGE means that long-term investors now control a substantial 32.50% of the total circulating supply. In the crypto world, a higher percentage of coins controlled by long-term holders often instills confidence and suggests a belief in the project’s long-term viability.
The Potential for a DOGE Price Rally:
While the current sentiment in the memecoin market may be bearish, the accumulation patterns among miners and long-term holders could set the stage for a DOGE price rally when sentiment shifts.
The In/Out of Money Around Price (IOMAP) data, which analyzes the distribution of current DOGE holders’ purchase prices, supports this optimistic outlook. It indicates that DOGE’s most significant resistance buy-wall is currently at the $0.07 mark. However, if the miners continue accumulating and long-term investors hold their positions, a rally toward $0.08 is within reach.
On the flip side, a bearish sentiment could lead to a dip toward $0.05. But in this scenario, strong support could emerge from holders who bought 928.4 million DOGE at an average price of $0.061.
While Dogecoin’s recent price performance has left much to be desired, the accumulation by miners and long-term investors, coupled with potential catalysts like Elon Musk’s support and industry developments, offer a glimmer of hope for DOGE enthusiasts. The crypto market remains unpredictable, but these accumulating trends suggest that DOGE could be gearing up for a notable price action in the near future. Investors and traders should stay vigilant and keep a close eye on market sentiment and these accumulating factors to navigate the DOGE market effectively.