Interest in Dogecoin (DOGE) has been on a steady decline in the last year and miners have not been exempt from this. Recent data shows that these miners may already be losing faith in the meme coin which they have been offloading in the millions in the last two months.
Dogecoin Miners Sell $53 Million Worth Of Coins
The Dogecoin miner reserves saw a significant drop between August and October which suggests that this holder cohort is beginning to sell. And given the fact that DOGE miners are some of the largest holders, their selling can signal doom for the cryptocurrency.
As data from IntoTheBlock shows, Dogecoin miner numbers dropped from 4.67 billion DOGE to 4.35 billion DOGE. This means that between August and October, these miners reduced their balances by around 320 million. To put this in perspective, in dollar figures, DOGE miners have sold around $53 million worth of tokens in less than two months.
Miners reduce their holdings | Source: IntoTheBlock
Interestingly, miners are known to wait for better prices before selling their holdings. This is because when prices are low, they do not make as much from their activities, and could even be taking losses. However, selling them at higher prices ensures they are able to cover their overhead costs as well as realize gains from their mining activities.
Since the miners are selling such a large number of coins at low prices, it could suggest that they do not see the price of the meme coin going up anytime soon. The selling pressure from them dumping their tokens also pushes the coin’s price further down, contributing to an already bearish trend.
Time To Sell DOGE Holdings?
The miners’ DOGE selling has been between August 17 and October 5, which could suggest they are done selling. If this is the case, then the downtrend in the Dogecoin price may not continue from here. However, if miners choose to continue selling, it could be a different ballgame entirely.
As reported by NewsBTC, Dogecoin is already falling under the bearish headwinds as its daily active addresses were in decline. There has been a decline in the daily active addresses as daily transactions fell to 38,000 on Sunday, an over 98% drop from its 2023 peak of 2.08 million in May.
Whales have also been selling at the same time that miners have been offloading their coins. This explains the decline in DOGE’s price over the last month. And if they do continue to sell, then DOGE could see a break below the $0.06 support before the week is over.
DOGE loses footing above $0.6 | Source: DOGEUSD on Tradingview.com
Featured image from Shrimpy Academy, chart from Tradingview.com