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Tens of Millions of DOGE Top up Miners' Reserves: Is Dogecoin Rally Ahead?

Tue, 07/11/2023 - 16:45
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Gamza Khanzadaev
Millions of DOGE flow into Dogecoin miners' wallets in what may seem bullish signal, but there's a catch
Tens of Millions of DOGE Top up Miners' Reserves: Is Dogecoin Rally Ahead?
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Over the last five days, Dogecoin (DOGE) miners have witnessed a significant surge in their reserves, according to data from crypto intelligence portal IntoTheBlock. The reserves of direct network participants have grown from 4.47 million to 4.52 million DOGE during this period, marking a notable increase.

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In the crypto realm, such developments often serve as potential indicators of an imminent price surge for the token. Per traditional wisdom, an accumulation of reserves is viewed optimistically, implying bullish sentiment. Conversely, a sell-off by miners is typically perceived as a bearish sign. However, it is essential to consider the broader context surrounding these trends.

Source: IntoTheBlock

Taking a closer look at the larger picture, it becomes apparent that the spike in Dogecoin miners' reserves follows an outflow of 60 million DOGE earlier this month. This suggests that, in July alone, approximately 10 million more DOGE flowed out of these addresses than entered them.

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While this may initially raise concerns, it is crucial to understand that Dogecoin miners' reserves merely account for 3.22% of the total tokens in circulation. Consequently, these fluctuations are less likely to exert a significant impact on the overall DOGE price. Instead, they may reflect current sentiment among network participants and provide insights into the DOGE market's dynamics.

Is this ultimately a signal of an imminent Dogecoin rally? It is an open question, but the sentiment hints at such a possibility.

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About the author

Financial analyst, trader and crypto enthusiast.

Gamza graduated with a degree in finance and credit with a specialization in securities and financial derivatives. He then also completed a master's program in banking and asset management.

He wants to have a hand in covering economic and fintech topics, as well as educate more people about cryptocurrencies and blockchain.