- Dogecoin miners’ reserves topped $30 million in a 7-day period.
- The growing miner reserve, whale accumulation, and on-chain activity spike set the stage for a possible price rally.
Dogecoin (DOGE) had a price spike over the weekend, hitting $0.079 after miners amassed $30 million worth of DOGE in just one week. This substantial increase in miners’ reserves, revealed through on-chain data, has sparked speculation about the potential for DOGE to reach the elusive $0.10 mark in the coming days.
Dogecoin Miners’ Strategic Accumulation
According to data from IntoTheBlock, Dogecoin Miners’ reserves on November 20 stood at 4.18 billion DOGE. Surprisingly, miners increased their holdings by 400 million DOGE within a week, bringing the cumulative reserve balances to 4.59 billion as of November 26.
The Miners Reserves chart serves as a window into the recent trading activity of Dogecoin node validators, offering real-time insights into changes in the total coins deposited in wallets controlled by recognized mining companies and mining pools.
During the period between November 20 and November 26, the 400 million DOGE acquired by miners had a value that is worth approximately $30 million when assessed at the 7-day SMA price of $0.075. This bullish trading activity among miners comes off as a significant driver behind the recent surge in Dogecoin prices over the weekend.
The bullish disposition of Dogecoin miners raises the question of whether other strategic investors and crypto whales will follow suit. If these larger players mirror the miners’ optimism, it could sustain an upward trajectory for DOGE in the coming days. Despite a recent rejection at the $0.085 territory, the bulls have displayed resilience, maintaining a strong buying momentum and keeping DOGE from excessive volatility.
Dogecoin’s Market Outlook and Price Predictions
Should the bulls maintain control, analysts predict that DOGE is likely to encounter initial resistance at the previous local high of $0.086. However, a decisive breakout from this resistance level could propel Dogecoin towards reclaiming the $0.1 mark.
On the flip side, bearish forces could invalidate this prediction if a downswing below $0.07 occurs. Yet, the bulls are expected to establish a substantial buy wall around the $0.071 price range, potentially preventing a major bearish reversal.
If this support territory holds, Dogecoin may evade a downturn, sustaining its current bullish trend. However, the $0.1 price speculation remains contingent on continued positive sentiment and increased buying activity from both miners and other influential investors.
Beyond the miners’ accumulation, Dogecoin has recently witnessed a surge in transaction volumes exceeding $100,000, generating curiosity and speculation within the crypto community as to the intention of large buyers. This uptick underscores the embrace of institutional investors and prominent market players, commonly referred to as “whales.”
The surge in transaction volumes aligns with a notable increase in on-chain activity. Active addresses have reached levels not seen since April, surpassing 106.1k, while new addresses surged to a six-month high of over 61k during the same period. Such metrics serve as indicators of growing interest and activity within the Dogecoin community, trends that are prime catalysts for price growth.
