Miners Offload 65M Dogecoin In 24 Hours, Selloff Ahead?

Dogecoin (DOGE) Price Fluctuations and Miner Activity

Recent developments in the cryptocurrency market show Dogecoin (DOGE) experiencing price volatility. However, over the past week, DOGE has shown signs of recovery from its recent low of $0.1465, attempting to break through new resistance levels.

Will Miner Sell-Offs Cause a Price Crash?

DOGE's recovery could be hampered by recent miner activity. Over the past 48 hours, significant miner selling has raised concerns. On-chain analyst Ali Martinez highlighted that Dogecoin miners sold 65 million DOGE during this period. Miners receive DOGE as a reward for validating transactions and securing the network. This large-scale liquidation has sparked worry among some market participants.

Image Source: Ali Charts on X

The substantial sell-off could increase the circulating supply of DOGE on exchanges, potentially leading to downward price pressure if demand doesn't increase proportionally. Furthermore, negative market sentiment could amplify this effect, with some interpreting the miner actions as a bearish signal. Analysts suggest that this significant sell-off could cause short-term price fluctuations, depending on market conditions and the ability of the market to absorb the increased supply. Conversely, a strong absorption of the sold DOGE could be viewed as a bullish indicator.

Investor Confidence in Dogecoin

Despite miner activity, DOGE's Open Interest shows investors are betting on a price increase. Over the past 24 hours, Open Interest rose by 3%, with Dogecoin futures traders committing 8.43 billion DOGE (approximately $1.49 billion). This indicates renewed interest, particularly on major exchanges like Gate.io, Binance, Bybit, and OKX, suggesting traders anticipate a potential price breakout. Gate.io saw the highest commitment, with 29.86% of the total Open Interest.

Market observers see this high level of trader interest as a sign of optimism despite recent price fluctuations.

Dogecoin Price Outlook

At the time of writing, DOGE was trading at $0.1772, a 2.67% increase in the last 24 hours, though trading volume decreased by 27.64% to $801.55 million. Analysts believe that increased trading volume could positively impact the price. Mid-term price predictions vary widely, with some analysts forecasting prices as high as $5. Ali Martinez, however, offers a more conservative prediction of $1.50 within the next 30 days and $3 in the long term.