Dogecoin miners have sold a significant amount of DOGE, leading to a considerable reduction in reserves. This has raised concerns about its impact on DOGE prices and overall market sentiment.

As DOGE struggles below key moving averages, will this miner sell-off lead to a deeper decline, or can the market absorb the selling pressure?

Massive Miner Sell-Off: A Bearish Signal?

Santiment’s chart shows that Dogecoin miners reduced their holdings from around 1.55 billion DOGE to 1.48 billion DOGE in a short period.

Source: Santiment

Dogecoin miners may be liquidating assets to cover expenses or adapt to market conditions. This selling pressure can lead to lower prices due to increased supply amid weak demand.

DOGE Price Reaction: Resilient or Fragile?

The 50-day MA ($0.202) and 200-day MA ($0.302) act as strong resistance levels, limiting DOGE’s upward momentum. The miner sell-off intensified as DOGE attempted to recover from previous declines.

Source: TradingView

Despite the miner sell-off, investors continue to accumulate DOGE, with total holdings reaching 20.32 billion DOGE. This indicates that while selling pressure has increased, market demand remains relatively steady.

Can Dogecoin Maintain Support?

For Dogecoin to stabilize, it needs to hold above the $0.165 support level, which has historically attracted buying interest.

However, if miners continue to sell aggressively, DOGE may retreat to the $0.15 range. On the other hand, any rise in demand could push DOGE back to $0.18 before attempting to reclaim the $0.20 level.

* Sign up for Binance to trade: Here
* Telegram: 3aW Crypto