Dogecoin has had a rough end to April, seeing its price tumble and lose an estimated $3.7 billion in market cap in the last 10 days. The leading meme-coin asset is down to just over $0.13, tumbling two cents in the last 48 hours.
Looking beyond the price action, recent on-chain movements observed among Dogecoin miners suggest the downward trend could linger. Data from IntoTheBlock’s miner reserves chart suggests big swings in DOGE balances held in the custody of prominent Dogecoin mining firms. This indicates a selloff amongst holders, likely due to panic over Dogecoin’s profits. Due to this selloff, DOGE may even sink lower.
Effectively, Dogecoin miners flooded the markets with 70 million DOGE in the last 5 days. The newly offloaded coins are worth $9.5 million when valued at Tuesday’s prices. Without any spark, DOGE may fall below the crucial $12 support level.
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Following the Bitcoin halving event, holders were optimistic that coins like DOGE would surge at the end of April, providing a fruitful May before the summer. However, BTC is barely trading above $60,000. This suggests that the entire market is in a downturn, and Dogecoin isn’t alone in its bearish momentum.
It will take a significant event to bring back bullish momentum for the asset. As much as holders are hoping for news of a $0.20 retest, it is just as likely that Dogecoin will crash to $0.10. At press time, the market cap for DOGE is down 6% just like its price.
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