Dogecoin Price Rally As Miners Collect 400M DOGE?

Dogecoin (DOGE) price bounced back above $0.075 on Thursday, but still has some distance to reach its monthly high of $0.086. The on-chain analysis suggests key indicators that can drive DOGE's value recovery mission.

In the year DOGE price has experienced a series of lows since its rejection around $0.086 on November 18th. However, recent activity from Dogecoin miners on the chain shows signs of a major recovery.

Miners have amassed $30M worth of DOGE in the last 2 days.

BeinCrypto reports how Dogecoin's price bounced back from a six-month high of $0.086 after the loss of Elon Musk's SpaceX spacecraft on November 18.

Market turmoil following Changpeng Zhao's exit from Binance further exacerbated the decline, with the price of DOGE heading to a one-week low of $0.072 on Wednesday, November 2. However, on-chain data trends have shown unusual activity among Dogecoin miners, with high price action.

According to on-chain data compiled by IntoTheBlock, Dogecoin miners have increased their cumulative wealth by 400 million DOGE in the past two days.

The mining holdings chart below clearly shows how Dogecoin network validators increased their holdings from 4.17 billion to 4.57 DOGE between November 20th and November 22nd.

At Dogecoin's current price of $0.075, the newly purchased 400 million coins are worth nearly $30 million. Investors often interpret it as a bullish sign when miners accumulate their rewards in volatile market conditions. It clearly shows that miners want to save for future profits rather than sell at the current price.

If strategic investors are buying into the miner, DOGE's price rally could be back on track in the coming days.

DOGE has cooled around the media hype.

Additionally, as DOGE prices continued to decline this week, crypto traders seem to have shifted their focus to other high-charters such as Bitcoin (BTC), Ethereum (ETH) and Uniswap (UNI). In practice, the media hype around Dogecoin has been greatly reduced.

To confirm this position, the sentiment chart shows that since last weekend's rejection of $0.086, Dogecoin's social volume has fallen from 448 to 112 at the press conference on November 23.

The social sharing secret measures the number of mentions it attracts on the relevant crypto media channels. This decline in social size may be critical to DOGE's price action, for several reasons.

First, a decline in social media signals that the market has reached a local low. Strategic swing traders looking to buy below can consider this the perfect time to enter the DOGE market. Second, when an asset has less media coverage, prospective investors often see the current price as the fair market value of the coin.

Therefore, if investors consider the current decline in Dogecoin's media as a signal to enter the market, the price of DOGE may be on the verge of a major bullish reversal.

DOGE Price Prediction: Could the rally reach $0.10?

From the perspective of the chain, the increase in mining reserves and demand from new users can further drive the DOGE rally. However, to hold the momentum, the bulls must first balance the $.080 resistance.

The Global Out of Money (GOM) database that collects current DOGE holders as an entry price. This confirms this prediction.

It shows that 762,860 addresses bought 19.6 billion DOGE at a minimum of $0.80. If those investors exit early, they could trigger a quick Dogecoin price correction. However, scaling that first sales wall can open the door to $0.10 in recovery.

Once again, bears may negate that positive forecast if the price of Dogecoin falls below $0.06. However, in that case, 457,560 addresses that bought 30.8 billion DOGE at an average price of $0.067 could provide initial support. If those investors hold tight to HODL, they will avoid a major Dogecoin price reversal.

But if you sell early, the price of Dogecoin can drop to $0.06.