Dogecoin price surged past $0.17 on May 23, achieving a 45% gain this month. On-chain data reveals key factors driving this uptrend. In May 2024, Dogecoin’s price climbed from $0.12 to a peak of $0.17 by May 24. Despite PEPE and Floki Inu achieving triple-digit gains, DOGE’s 45% increase is significant.
On-chain data shows a shift in Dogecoin miners’ sentiment post-Bitcoin halving, contributing to DOGE’s 45% rise in May 2024. IntoTheBlock’s miner reserves chart tracks real-time changes in coins held by recognized Dogecoin mining firms and pools, offering insights into miners’ short-term trading sentiment.
Dogecoin price action DOGEUSD | May 1 May 24 2024 | TradingView
Miners’ Accumulation Mode
An increase in miners’ reserves indicates bullish sentiment and a choice to hold newly mined coins for future profits. The chart shows Dogecoin miners sold 160 million DOGE, dropping their balances from 4.25 billion to a yearly low of 4.09 billion between April 13 and April 20, just before the Bitcoin halving.
Dogecoin Miners Reserves vs Price | Source IntoTheBlock
Since the April 20 Bitcoin halving, DOGE miners have switched to accumulation mode, adding 70 million DOGE to their reserves, raising their balances to 4.16 billion DOGE by May 23. Valued at current prices, this implies Dogecoin miners have acquired $11.7 million worth of DOGE since the halving.
Related article: DOGE : Major Whale Transfers Boost Dogecoin Price by 12%
Mining Equipment Shift
Speculations suggest many Bitcoin miners, rendered unprofitable by the reward cut from 6.25 BTC to 3.12 BTC, may have shifted to mining cheaper Proof-of-Work (POW) coins like DOGE. If this trend continues, new Dogecoin miners with superior technology and higher profitability might prefer accumulating coins over periodic selling to cover costs.
Related article: Dogecoin Price Analysis: Anticipating the Next Phase of This Bull Run
Consequently, fewer newly-mined coins entering the market could boost DOGE price rises and maintain higher support levels during corrections. Dogecoin, hovering above $0.17 on May 23, looks poised for another surge towards $0.20, driven by miners’ $11.7 million accumulation. Investors await the Ethereum ETF verdict, and it is expected to stay above $0.14, supported by the IntoTheBlock GIOM indicator.
However, to reach the $0.20 target, bulls must overcome the critical $0.18 resistance, where 750K addresses hold 13.3 billion DOGE coins.
