According to on-chain data shared by analyst Ali Martinez, this sudden burst of selling pressure amongst miners comes just as Dogecoin price is under pressure, hovering around $0.17 at press time.
Due to its low transaction fees, meme-driven appeal, Elon Musk has fervently supported Dogecoin. In April 2021, he referred to the meme coin as the “people’s crypto” and even included it in payments linked to Tesla and SpaceX.
According to CryptoQuant metrics, the miner offloading fits within the larger context of a general downtrend in Dogecoin’s price. DOGE has dropped sharply from mid-February highs of more than $0.30, and ongoing price action indicates further weakness over the past month. If selling pressure continues to rise, Dogecoin could test lower support levels near $0.15.
Miners liquidating more significant amounts typically signifies a concern about profitability or market pressure, mainly due to low price stability.
However, Trader Tardigrade says DOGE could see a nine-year bullish repeating pattern. On March 14, the trader took to X and said, “Dogecoin HUGE Surge is coming.” Seen in 2017 and 2021, this cycle consists of a significant breakout following a correction phase that could result in a parabolic price surge. Should this trend hold, Dogecoin may see another significant surge, maybe aiming for $1 or more over the long term.
The current price action of DOGE follows a period of volatility across the wider crypto market, driven by macroeconomic conditions, including inflation fears, Fed policy pivots, and liquidity withdrawals.
According to analysts, whenever a downturn occurs in Bitcoin and the overall market, altcoins such as Dogecoin usually experience increased volatility.
Outside of miner activity, macroeconomic worries around inflation, Fed action, and liquidity tightening have put pressure on broader altcoin performance, including DOGE.
Long-term cycle indicators seem to suggest a rally could be forthcoming despite ongoing selling pressure.
DOGE could recover in the short term if buyers step in and stabilize above $0.17. On the other hand, there is a risk of a deeper dive before any serious rebound on a drop under supports.
Disclaimer: The information provided in this article is for educational and informational purposes only and should not be considered as financial or investment advice. Always conduct your own research and consult with a qualified financial advisor before making any investment decisions.
