Dogecoin (DOGE) price rebounded in the $0.091 region after rising 15% in the last 7 trading days. With miners flooding the market in recent weeks, on-chain data reveals that increased selling pressure could soon affect DOGE’s price.
Dogecoin has gained 24% since the beginning of April as Elon Musk teased Starship on 4/20 Dogecoin. Bullish momentum in the Doge community could see Elon Musk’s SpaceX activity pick up planning to launch First missile launch First flight test of a fully integrated Starship missile and Super Heavy missile.
Dogecoin whale transactions have been declining
Crypto whales have been betting the least on DOGE in the past two weeks. Since the last spike on April 4, there has been a significant decrease in the number of whale transactions on the network. The blockchain data company, Santiment, measures whale activity by tracking daily transactions of $100,000 and above.
Looking at the chart below, large daily transactions involving DOGE fell from 1,062 transactions on April 4 to 273 transactions at the close of April 18.
When whales reduce their trading activity, it means that they lose faith in the short-term price predictions of the underlying currency. If whales continue to reallocate funds to other investments, the price of Dogecoin may be affected in the coming days.
Dogecoin miners flood the market
Another important factor that indicates an impending downward price trend for DOGE is the selling frenzy among miners. Since late March, miner reserves, a metric that tracks wallet balances of recognized proof-of-work miners on the Dogecoin network, has been continuously declining.
Between March 27th and April 19th, miners sold 210 million DOGE worth about $19.1 million at the current market value of $0.091.
When miners sell their block rewards, it increases the supply of cryptocurrency in circulation. Unless equal demand is met, the selling trend between the two metals is likely to cause Dogecoin price to drop in the coming days.
DOGE Price Prediction: Bears could drop the price of Dogecoin to $0.082
IntoTheBlock’s global In/Out of Money price distribution provides data-driven information which indicates that DOGE price is likely to lose its current support at $0.091. Although 207,000 addresses that bought 19.5 billion DOGE coins in that region could prevent the drop
But if the bearish scenario continues, Dogecoin holders can expect the price to drop to $0.082. However, DOGE can find more significant support than 490,000 addresses containing 58 billion coins.
However, the bulls may nullify the bearish market sentiment if DOGE price can retreat above the $0.093 resistance area. But as noted above, the 397,000 addresses containing 7.6 billion tokens are likely to sell and inadvertently slow the bullish momentum.
But if Dogecoin price can break the $0.093 resistance, holders can expect a rally towards $0.12.
In line with Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate and unbiased reporting, but market conditions are subject to change without notice. Always do your own research and consult with a professional before making any financial decisions.