While the global altcoin market is down 2.5% since the end of April 2023, DOGE bulls remain firm. Perhaps the recent accumulation trend of DOGE miners and disillusioned holders will drive the price back up.
Miners are getting more optimistic
After selling about 5% of their total reserves in April, DOGE miners started to increase their holdings in May. The data on the chain shows that the accumulated holdings increased to 20 million in 3 days, with a continuous positive net inflow.
The graph below shows that on Tuesday, May 2, DOGE miners had only 4.47 billion token reserves. By Friday, May 5, their balance increased to 4.5 billion DOGE.
The additional 20 million coins are worth about $2.3 million and have a market price of $0.078.
retain data Excavator | Source: enter the block
When miners start accumulating block rewards instead of selling them, two conclusions can be drawn. First, mining costs are greatly reduced. In addition, they have increased their reserves to cover higher prices in the future.
Either way, increased miner reserves mean less supply in the market and more pressure on DOGE prices to rise.
Additionally, since miners currently control more than 3% of the total DOGE circulating supply, this may weigh on optimism among other investors. If the accumulation trend continues, the bullish price prediction will be confirmed.
Disappointed holders refuse to sell
Another important factor that can add credibility to DOGE’s positive price forecasts is a low MVRV ratio. MVRV stands for Market to Real Value Ratio. It estimates the current financial situation of holders of recently purchased assets.
When things stall, most holders are frustrated with their current financial situation. The chart below shows that most investors who bought DOGE in the past 30 days lost about 7%.
MVRV rate (30 .) sky) | Source: mood
Notably, the increase in unrealized losses will result in DOGE holders losing 10% for the first time since USDC lost its anchor spread.
Therefore, investors can count on a bullish price forecast, as the low MVRV ratio means that existing holders are less likely to sell as they seek to avoid further losses.
DOGE Price Prediction: Path To $0.09?
IntoTheBlock’s In/Out Money Around Price (IOMAP) indicator suggests a possible rally to $0.09.
However, bulls will first face heavy selling pressure from 142,000 addresses holding 15 billion coins at an average price of $0.084.
But if the bullish forecast is confirmed, DOGE can rally to $0.09. In the region, 139,000 investors bought 11 billion tokens at a top price of $0.09, which could slow the gains.
IOMAP data | Source: enter the block
Conversely, if DOGE loses the current support at $0.076, the bears will take control of the market. Although a cluster of 140,000 bullish addresses buying 8 billion coins at an average price of $0.076 may prevent this from happening.
If unsuccessful, holders should be prepared to risk a further drop to $0.066. Here, 520,000 addresses with 45 billion DOGE are more substantively supported.
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