Can DOGE Avoid a Bearish Downswing in October
The price of Dogecoin is rooted at $0.06 territory, as bullish investors have continued to HODL their positions even though the token’s performance in September was relatively flat.
After weeks of the DOGE price stagnation, the miners of the meme token have decided to offload some of their block rewards.
DOGE miners
In mid-September, the Dogecoin miners accumulated their tokens for a brief period of time, but they seem to be back in sell-off mode once more because prices have remained stagnant.
The balance of the miners has now reduced for three months in a row. The total balance held by mines on July 11th was about 4.7 billion tokens, but as of September 28th, this figure has declined.
The total cumulative balance of DOGE miners is now 4.35 billion tokens. This means that within a duration of three months, the miners have reduced their holdings by almost 350 million tokens.
Taking the current prices into account, the 350 million DOGE tokens that have been sold since July 11th have a value of about $21.5 million.
There could be a major downswing in the price of the largest meme token in the market if miners intensify their selling trend in October.
This is due to the fact that 3.08% of the total supply of DOGE in the market is currently under the control of these miners.
Whale investors
According to on-chain data, there has been a significant reduction in the trading activity associated with whale investors.
This is also confirmation of the bearish price prediction for DOGE. On July 25th, Dogecoin had reached its peak and its large transactions had stood at 819.
However, since then, the price of the original meme token has headed downhill and as of September 28th, the total number of whale transactions stood at 79.
A fall in the whale transactions is usually considered bearish for the price of the crypto asset because it means reduced market liquidity, as market participants might find it difficult to execute trades.
Price Prediction
If there is lack of movement in the price of the leading meme token, it could lead to a prolonged bearish reversal in the coming weeks below $0.05.
However, it is important to note that there will be considerable obstacles for the bears close to this price level.
This is because there are a total of 441,640 wallets that have purchased about 6.62 billion DOGE tokens at a price of about $0.059.
If these holders decide to defend their positions, then a bearish downswing in the price of the meme coin can be avoided.
But, if the miners continue to sell, then the price of DOGE could eventually drop below the support level of $0.05.
If bulls manage to reclaim the $0.07 level, then this pessimistic price prediction could be avoided. But, there are 456,140 million wallets that have bought 1.67 billion DOGE tokens at a price of $0.06.
This resistance level could prove to be daunting for DOGE bulls if the miners continue to sell their holdings.
