Dogecoin joined the recovery in the crypto market, seeing its price rise to a local peak of $0.107 in December. However, the recent decline in DOGE’s value earlier this week was associated with significant sales by Dogecoin miners, who are among the largest holders of the cryptocurrency.
Comments suggest that Dogecoin miners actively sold their assets during the recent price increase. As of November 24, DOGE miners’ total reserves reached 4 billion 670 million DOGE, while by December 12, this number had fallen to 4 billion 400 million DOGE.
The drop after the sale of more than 240 million tokens amounts to approximately 25 million dollars, based on the average DOGE price over the last few weeks.
The sales by Dogecoin miners created a notable selling pressure on the altcoin, causing the DOGE price to fall below $0.091. Although the price started to recover, rising above $0.097, concerns continue that miners’ selling pressure could persist.
There appears to be a change in sentiment among Dogecoin miners, as the number of DOGE they hold showed a slight recovery from 4 billion 400 million to 4 billion 410 million DOGE from December 12 to December 13. Although this is a modest recovery, it indicates a potential shift in the selling trend.
Monitoring miner net flows, which represent the difference between total inflows and outflows in miners’ wallets, is another important indicator for Dogecoin. Following two days of negative net flows exceeding 80 million DOGE, a positive net flow of 7 million 90 thousand DOGE was recorded on December 13.
While still relatively low, this figure contrasts starkly with the 43 million 330 thousand DOGE recorded on December 12, indicating a potential change in the dynamics of miner activities.
As Dogecoin investors monitor the market, recent sales by miners have added complexity to the altcoin’s price trajectory. The ongoing recovery and changes in miner sentiment are likely to affect DOGE’s short-term movements and will compel investors to adapt to these evolving dynamics.
