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Dogecoin price rebounded above $0.16 on June 1, reversing losses from the 12% decline last week, how will DOGE miners recent activity impact the rebound phase?
DOGE price rebounds after 12% Decline
Dogecoin price reclaimed $0.16 on June 1 as bulls rallied to avert a downswing below the critical support level at $0.15. The Dogecoin community has had a noteworthy week, with the death of Kabosu, the iconic dog that has graced the DOGE logo since inception.
The Ethereum ETF launch also saw memecoin traders flock towards Ethereum-hosted memes like PEPE and Floki Inu (FLOKI), putting a drag on demand for Dogecoin for most of the week.
In effect, DOGE price rapidly entered a 6% decline in the last week of May, shedding over $1 billion off its market capitalization in the process.
However, as the euphoria surrounding ETH ETFs cools off, retail demand appears to be returning to the DOGE markets, as reflected by the modest 3.3% surge recorded on Saturday, June 1.
Dogecoin Miners Reserves Hits $730 million
At retail demand gradually returns to the DOGE markets, on-chain data shows that Dogecoin miners have also entered bullish accumulation mode.
IntoTheBlock’ miners reserves chart below monitors real-time changes in reserve balances held by recognized Dogecoin mining firms. This helps to provide alter strategic traders on Dogecoin miners’ trading activity.
The chart above clearly depicts that Dogecoin miners have been in a buying frenzy over the past month. As of May 1, the miners held $523.8 worth of DOGE in their reserves. But by the end of the month that figure has surged to $732.6 million.
Essentially, this implies that the Dogecoin miners grew their reserves by $208 million in May 2024. When miners make such a large accumulation within a relatively short period, strategic investors interpret it as a bullish signal for a few key reasons.
Firstly, it means that fewer number of newly-mined coins are being dumped onto the market, cooling the potential selling pressure. Also, the miners’ influence within the blockchain network means that other investors could opt to mirror their trades during periods of neutral market sentiment.
These key factors could propel DOGE price into a prolonged rebound phase in the days ahead.
DOGE Price Forecast: Bulls Could Target $0.20 Rebound
Dogecoin price reached a daily timeframe peak of $0.16 in June 1. But drawing insights from the miners’ $208 million haul in May 2024, DOGE price could be on the verge of 30% rebound above the $0.20 milestone in the days ahead.
Further affirming this bullish stance, IntoTheBlock’s GIOM data shows that Dogecoin’s next major resistance cluster lies at the $0.18 level.
As seen in the chart above, 761,310 holders had acquired 13.5 billion DOGE at the average price of $0.179. If majority of those holders opt to take early profits, Dogecoin price could struggle to breakout for that resistance cluster.
But if DOGE bulls can smash that sell-wall, another leg-up above the $0.20 area could be on the cards.