Welcome to Extreme Investor Network, where we provide unique insights and analysis on the stock market, trading, and all things Wall Street. Today, let’s dive into the intriguing world of Dogecoin and how the actions of miners are impacting its price.
When the market rally kicked off around July 5, Dogecoin miners collectively held 4.44 billion DOGE in their balances. However, as demand surged following positive NFP and CPI data, these miners shifted gears into sell-off mode to take advantage of rising prices.
Fast forward to July 19, and we see that Dogecoin miner reserves have dwindled to just 4.37 billion DOGE. This means that miners have sold off a whopping 700 million DOGE in the past 14 trading days, showcasing their influence on the market.
Miners play a crucial role in any Proof of Work (PoW) cryptocurrency ecosystem. Their sell-off activities can shake up existing holders and deter new investors, while also flooding exchanges with newly-mined coins and diluting the short-term supply.
With the current prices, DOGE miners have injected over $84 million worth of newly-mined coins into the market, leading to a decoupling of DOGE price from the overall trend and a recent 8% pullback in the last 48 hours.
Looking ahead, our Dogecoin Price Forecast suggests that the $0.10 mark could be at risk. Currently trading at $0.11969, DOGE has seen a slight increase of 0.11% in the past day, with signs of volatility and significant movements in recent sessions.
The Relative Strength Index (RSI) stands at 50.07, signaling a neutral position for Dogecoin. While this may indicate sideways trading in the short term, the recent RSI movements hint at potential upward momentum, especially as it has bounced back from oversold levels earlier in the month.
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