Simply putOn April 3rd, DOGE broke through $0.10 for the first time in 2023
Simply put
- On April 3rd, DOGE broke through $0.10 for the first time in 2023.
- As social awareness approaches the level of happiness, the Gougou coin miners have sold 130 million coins.
- DOGE can find support at $0.088.
The price of dog coins soared to over $0.10, reaching a four month high. However, as miners start recording profits, basic on chain indicators will send a red signal. Should DOGE make price adjustments as social response approaches the level of euphoria?
On April 3rd, ElonMusk angered the encrypted community due to Twitter embedding the Dogecoin logo on its homepage. This move witnessed a rapid 24% surge in DOGE within 24 hours after the Xinkuai transaction. As the news begins to take root and the market approaches saturation levels, the on chain data indicates that a correction is imminent.
Dog coin miners are booking profits
Dog coin miners seem to be taking advantage of the recent price surge to make some profits. According to data compiled by IntoTheblock, miners have sold 130 million reserve coins worth approximately $11.8 million in the past week.
The following figure shows how the reserves of dog coin miners decreased from 4.76 billion to 4.63 billion DOGE between March 28th and April 5th.
When miners start selling their block rewards, the supply of tokens in the market increases. Due to the dog coin miners holding nearly 3.3% of the total supply of DOGE, their selling pressure will significantly affect prices.
Similarly, on chain data from Santiment shows that the global dog coin community is currently thriving. Social volume is an on chain indicator used to measure the total number of times a project has been mentioned in relevant media channels.
The following figure shows how the social volume of Dogcoin soared from 4244 to 17248 between April 2nd and April 5th.
Historical price data shows that when daily social media mentions exceed 13000, dog coins often retreat. It is worth noting that after Elonmusk's recent Twitter gimmick, DOGE's social mentions exceeded 17000.
In summary, the selling of miners and the surge in social media frenzy can be explained as the upcoming price retreat signal.
DOE Price Forecast: Will the support level of $0.088 be maintained?
The current price distribution of the total buy/sell limit orders issued on the exchange indicates that DOGE may retest $0.076.
IntoTheBlock's exchange market depth chart shows that the 50 million DOGE purchase orders placed by exchange traders initially helped keep meme coins above $0.088. But if DOGE loses this support, it may slide towards $0.076, with a larger buying wall of 167 million tokens helping to stop short positions.
Nevertheless, if DOGE can rebound above $0.11, bulls can still make progress. But it must withstand the selling pressure of approximately 100 million tokens to achieve this goal. If this happens, DOGE may continue to soar to $0.12, with short sellers placing orders to sell another 157 million tokens.
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