In the past few weeks, Dogecoin experienced a price surge, hitting a local peak of $0.107, but subsequently faced a downturn, potentially linked to a significant sell-off by DOGE miners. These miners, possessing billions of DOGE, wield considerable influence in shaping the cryptocurrency’s market direction.
According to crypto data platform IntoTheBlock, Dogecoin miners have consistently sold off portions of their holdings during market upswings. The total reserves of DOGE miners, which stood at 4.67 billion on November 24, experienced a decline of several hundred million by the second week of December, dropping to 4.4 billion.
Dogecoin Sell-Off: 240M Tokens, $25M, Brief Dip Below $0.091
Over the past month, daily decreases in reserves have accumulated, resulting in a significant sell-off of over 240 million tokens by December 12. At an average DOGE price over this period, the cumulative value of these sales amounts to approximately $25 million, contributing to the altcoin’s brief dip below $0.091.
Despite this sell pressure, Dogecoin has shown signs of recovery, surpassing $0.097 as of Thursday. Investors welcome this upward movement, but concerns linger about potential further sell-offs by DOGE miners.
Recent data, however, indicates a shift in sentiment among Dogecoin miners. Between December 12 and 13, their holdings increased slightly from 4.4 billion to 4.41 billion, signaling a modest recovery. Additionally, after two days of negative trends totaling over 80 million DOGE, Dogecoin miner net flows turned positive, recording 7.09 million DOGE on December 13— a notable change from the -43.33 million reported on December 12.