Elon Musk’s Favorite Dogecoin Sees Massive Sell-Off—Miners Dump 65M DOGE in 48 Hours

Source Cryptopolitan

According to on-chain analyst Ali Martinez, Dogecoin miners have offloaded 65 million tokens in the last 48 hours. The DOGE token has only been trading at $0.17 so far, even as investors continue to cash out their holdings. 

The token dropped from its peak in February and could fall even further if selling pressure persists.

DOGE miners dump 65 million tokens in two days

When miners sell off large amounts of tokens, it’s usually driven by profitability concerns or market pressure from price instability. The Dogecoin token has seen its miners dump 65 million tokens in just two days.

Some analysts have even hinted that the token could fall below the $0.15 mark if the selling pressure continues to rise. However, some believe that the token could soon overcome its decline and surge thereafter. For instance, Trader Tardigrade thinks the token could surge if the trend keeps up. He commented, “Dogecoin HUGE Surge is coming.” 

He added that in previous years, whenever a breakout led to a correction phase, the token would experience a price rise soon after. He insisted that if investors continue to sell their tokens, Dogecoin could hit $1 or even more over the long term.

Additionally, analyst ByllifyX believes the token could hit $3 soon. Some even stated that if more buyers come in, the token could spring back above $0.17 in the short term. 

Historically, when Bitcoin declines, the entire crypto ecosystem is affected, and altcoins like DOGE typically see increased volatility. Bitcoin is trading slightly below $85000, falling from its high of $90000 earlier this month. Some analysts have thus attributed DOGE’s current price action and market state to Bitcoin’s downturn and inflation fears.

Musk’s involvement with the Department of Government Efficiency called for investor attention to the DOGE token

When Donald Trump announced plans to create a digital asset stockpile, DOGE jumped nearly 20% to $0.24 despite not being listed among the altcoins featured in the stockpile.

On Monday, whales purchased 140 million DOGE in just 24 hours. Martinez had even posted that investors had bought up 910 million tokens over the weekend.

Some analysts tied the renewed interest in the token to Elon Musk’s involvement with the Department of Government Efficiency (DOGE). They argued that the government agency’s use of the same acronyms as the token contributed to the surge in the token.

On the Joe Rogan Experience last week, Musk acknowledged the connection between the token and the agency. He claimed that he was going to name the agency the Government Efficiency Commission, which was “very boring.” However, he stated that he followed people’s advice online on the Department of Government Efficiency, which fit perfectly.

However, with more miners offloading their holdings, the future of the Dogecoin remains unclear.

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