Dogecoin (DOGE) Flashes Signs of Strength With Miners Accumulating $56 Million – Here’s the Ideal Buy Zone
While the cryptocurrency market has been reeling from a recent downturn, Dogecoin (DOGE) has displayed nice resilience.
Last week, DOGE saw a modest 4% decrease, outperforming other popular altcoins like XRP, which fell by 6%, Solana (SOL) by 6.6%, and Polygon (MATIC) by almost 9%.
What you'll learn 👉
Technical Indicators: A Mixed Bag
In July, Dogecoin experienced a bullish breakout from a Falling Wedge pattern, catapulting its price to $0.080—a 30% gain. However, the meme coin has since retraced its steps, falling below its 200-day moving average of $0.08 and a critical support level of $0.07. Investors are now keenly watching for the price to either:
- Reclaim these pivotal levels, confirming an uptrend, or
- Retrace further to the $0.053 support level, offering a potential swing entry point.
Understanding the Metrics
- MACD Line vs Signal Line: The Moving Average Convergence Divergence (MACD) Line being above the Signal Line is a bullish indicator.
- RSI: The Relative Strength Index (RSI) below 45 is generally considered bearish.
- MACD Histogram: Declining bars on the MACD Histogram suggest weakening momentum.
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Support and Resistance Zones
Investors should keep an eye on the following zones:
- Support Zones: $0.060 and $0.053
- Resistance Zones: $0.070 and $0.100
Behind-the-Scenes: Miners Accumulate
According to data analytics firm IntoTheBlock, Dogecoin miners have been quietly accumulating reserves. As of August 8, they held 4.29 billion DOGE, which increased to 4.38 billion DOGE a month later.
Miners’ Strategy: HODL for the Rally
The Miners Reserves metric tracks real-time changes in the wallet balances of recognized Dogecoin miners. When evaluated against current market prices, the inflow of 90 million DOGE translates to an accumulation of approximately $56 million.
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Show more +This suggests that miners are opting to hold onto their coins in anticipation of significant price movements, rather than selling them off.
Final Thoughts
Dogecoin’s recent performance and miner behavior indicate a complex but optimistic picture. While technical indicators present a mixed outlook, the underlying sentiment leans towards a bullish future, especially with miners ramping up their reserves.
As always, investors should exercise caution and conduct their own due diligence.
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