As the king cryptocurrency, Bitcoin, aims for $36,000 again, the downward trend in altcoins seems to be reversing. The performance of BTC price directly affects the rest of the market. Investors expect Bitcoin to continue its upward movement steadily, avoiding the major pullbacks they have been accustomed to for months. But what about the price of Dogecoin (DOGE)?
Dogecoin (DOGE) Analysis
Firstly, we need to look at the miners who have contributed significantly to the price decline. According to the data from the past month, the total reserve of miners has increased from 4.29 billion DOGE to 4.35 billion. This is the highest level since October 24. Miners seem to be optimistic for DOGE as the BTC price continues to rise.
However, miner reserves are far from the 7.45 billion DOGE figure in mid-2022. Below, you can see the accumulation over a longer period. Miners accelerated their selling and halved their balances as interest rate hikes began in 2022.
Did miners stop working, leading to such a reduction in their holdings? No, hash data tells us that miner power is also at a high level. Meme coins are usually the first ones to be abandoned in bear markets but can also bring huge gains in bull markets. It is advisable for investors to closely monitor miner movements and be cautious against potential selling waves. In the long-term chart, we clearly see that miners have pushed the price to deeper lows.
DOGE Price Predictions
Putting aside the on-chain aspect, DOGE price is hovering around $0.074. The altcoin, which erased half of yesterday’s gains, found some relief with the recovery of BTC. Daily closes above $0.0752 can target the $0.774 peak. There are no significant factors to support DOGE price from the outside. Elon Musk is busy with his new AI chatbot toy, and the number of strong meme coin alternatives to DOGE is increasing. The latest one is supported by 9gag.
Months ago, Elon Musk suggested that the Dogecoin team should focus on development activities. Then, a developer grant/reward program was announced. If there is news about the outcome of these steps, DOGE price could revive. On the other hand, new announcements regarding the DOGE-1 mission could support the price. For now, $0.068 is a good level for a medium-term upward trend, and if the specified levels are surpassed in the short term, a journey towards $0.1 could be possible. However, BTC must remain strong and convince DOGE miners to stop their selling and accumulate around the 7 billion level again.
