- Dogecoin miners have shown grit with a steady positive accumulation of the token in recent times.
- Besides miners, long term HODLers are also contributing to the supply crunch.
Within the past 30 days, Dogecoin (DOGE) miners have jacked up their holdings by adding more than 90 million units of the digital currency. This broad-based accumulation is believed to be in preparation for a potential major price action, according to a series of on-chain analyses.
It is worth noting that the last few weeks have been critical for top-ranking memecoins including Pepe Coin (PEPE), Shiba Inu (SHIB) and DOGE. Their performance in the market this past month has been dismal.
While Dogecoin saw its price plummet over the past few weeks, the worst slump saw a 15% valuation loss in a single day on August 8th. As of August 30th, PEPE joined DOGE to jointly rank as altcoin underdogs, even with several boosts including listing on exchanges for both tokens.
The current action of these DOGE miners show that they still have a level of confidence in the capacity of the memecoin to see a price jump amidst the broad bear market and individual sentiment brandished by the memecoin.
Generally, miners reserves monitor real-time changes in the wallet balances of top miners on the DOGE network. Drawing on this, data from IntoTheBlock showed that DOGE miners held only 4.29 billion coins in their cumulative reserves as of August 8. Currently, their cumulative reserves is at 4.38 billion DOGE, demonstrating that these miners have been putting efforts to boost the reserve.
In the case where it is benchmarked to the current market prices, the 90 million DOGE token accumulated by miners over the past month will be valued at $56 million. This situation suggests that miners might prefer HODLing their DOGE tokens than sell them in expectation for a possible price jump.
With a broad-based trigger that might explain these accumulations, a recent “money transmitter license” which was acquired by X (formerly Twitter) as well as Elon Musk’s well-documented support of Dogecoin appears to be fueling the miners optimism at this time.
Long-term Investors Increase Their DOGE Holdings
Additionally, long term investors have also trailed miners to increase their Dogecoin holdings. Over the last 30 days, the number of DOGE tokens held by long-term holders has seen a significant increase, per an analysis from IntoTheBlock.
Long-term investors are traders who have held their tokens for at least one year without moving or selling them. Most times, when there is an increase in the percentage of tokens controlled by these traders, it tends to boost the confidence in the community.
A month ago, only 45.37 billion Dogecoin were seen in long-held wallet addresses but today, it has surged to 46.63 billion, indicating that more than 1 billion DOGE coins have been added in the space of 30 days. Altogether, this means that long-term investors control as much as 32.50% of the total circulating supply of DOGE. Seeing that long-term investors have about one-third of the entire Dogecoin supply, this outlook is evident of a supply reduction which can trigger the price of the coin.
At the time of this writing, DOGE was trading at $0.06367, having gained 0.56% in the past 24 hours. Pseudonymous technical analyst, Poseidon recently identified a significant accumulation pattern in DOGE and is confident that the price of the token is set for a bull run.
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