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The largest meme coin in terms of market value, DOGE, is not going through a good period. The latest data confirms this. The concern that bear markets will deepen with further Fed tightening is keeping investors away from taking risks. It is impossible to predict the future, but if the current macro outlook does not significantly differentiate in favor of cryptocurrencies, it does not provide a favorable environment in the medium term.
Dogecoin (DOGE) Miners
In PoW-based cryptocurrency projects, miners are generally the largest holder group. Therefore, investors who follow on-chain data always monitor the movement in miner reserves. For example, Bitcoin, the largest PoW-based cryptocurrency, has been a victim of miner sales in many downward movements. Even if the outflows from these miner wallets do not enter exchanges, it is considered a signal that the risk is increasing.
DOGE is also a PoW project and miner reserves should be closely monitored. Due to the inability of Dogecoin (DOGE) to take advantage of the short crypto market surge at the end of September, its price remained stuck in the range of 0.06.
DOGE miners held a total of 4.67 billion DOGE as of August 17th. However, the latest data shows that it has decreased to 4.35 billion DOGE on October 5th. Miners who sold 320 million coins from their cumulative reserves between August 17th and October 5th appear to be responsible for the ongoing negative movement.
DOGE Price Predictions
Typically, such a significant decrease in miners’ reserves may be a preparation for the possibility of further worsening of the bear market mentioned at the beginning. If the selling trend among miners continues during this process, it can trigger larger drops while demand is weak.
However, the activity on the futures side gives us an idea of how the $0.06 support is being maintained despite all these sales. Dogecoin’s Open Interest was $205 million as of September 21st, but it climbed to $234 million at the time of press on October 5th. This influx of capital seems to have prevented miner sales from breaking the critical support for now.
Therefore, the rapid decline in open interest and the double-digit potential losses in BTC price could push the DOGE price to $0.05 and $0.035 levels. The amount of selling pressure on top of miners’ block rewards indicates that this could continue.
