Dogecoin participated in the crypto market’s recovery, seeing its price rise to a local peak of $0.107 in December. However, the recent decline in DOGE‘s value earlier this week has been associated with significant sales made by Dogecoin miners, who are among the largest holders of the cryptocurrency.
Comments suggest that Dogecoin miners actively sold their assets during the recent price increase. As of November 24, DOGE miners’ total reserves reached 4 billion 670 million DOGE, which decreased to 4 billion 400 million DOGE by December 12.
This drop, following the sale of more than 240 million tokens, translates to approximately 25 million dollars according to the average DOGE price over the past few weeks.
Effects on Dogecoin’s Price Dynamics
The sales by Dogecoin miners created significant selling pressure on the altcoin, causing the DOGE price to fall below $0.091. Although the price began to recover, surpassing $0.097, concerns persist that miners’ selling pressure could continue.
There seems to be a shift in sentiment among Dogecoin miners, as the number of DOGE they held showed a slight recovery from 4 billion 400 million to 4 billion 410 million DOGE from December 12 to December 13. Although modest, this change may indicate a potential shift in the selling trend.
Monitoring Miner Net Flows for Future Trends
Dogecoin miner net flows, representing the difference between total inflows and outflows in miners’ wallets, are another important indicator. After two days of negative net flows exceeding 80 million DOGE, a positive net flow of 7 million 90 thousand DOGE was recorded on December 13.
While still relatively low, this figure contrasts sharply with the 43 million 330 thousand recorded on December 12, suggesting a potential change in the dynamics of miner activities.
As Dogecoin investors monitor the market, the recent sales by miners have added complexity to the altcoin’s price trajectory. The ongoing recovery and changes in miner sentiment are likely to affect DOGE’s short-term movements and will necessitate investors to adapt to these evolving dynamics.