Dogecoin outlook as miners acquire additional 140 million DOGE tokens in August

Dogecoin (DOGE) has struggled with weak volumes in the past few weeks amid fading meme coin frenzy. Nevertheless, recent stats suggest impending trend shifts.

The leading meme crypto maintained a bullish momentum at press time, following a 5% 24-hour price increase. Dogecoin remains poised for extended upside, and on-chain data shows bullish sentiments from DOGE miners drove the ongoing recovery.

Miners purchase millions of DOGE tokens

Dogecoin witnessed surged interest this month amid surged demand for proof-of-work tokens. IntoTheBlock’s miner reserve chart confirms this narrative.

Source – IntotheBlock

DOGE miners hold 4.5 billion tokens at press time, reflecting a massive growth from 4.36 billion coins early in August.

Dogecoin miners have accumulated 140 million assets, worth approximately $14 million at current prices, over the past 20 days.

Generally, surged purchases by miners precede remarkable price rallies. These trends indicate trust in the token’s future gains. Further, such accumulation shrinks token supply on cryptocurrency exchanges, a catalyst for uptrends.

Elon Musk bolsters DOGE recovery

Also, Elon Musk’s recent X post contributed to Dogecoin’s impressive price actions on Tuesday. The Tesla billionaire shared a photo featuring the D.O.G.E word, an abbreviation for Department of Government Efficiency.

Elon Musk gained popularity in the crypto world after propelling Dogecoin to ATHs in 2021 using X posts. Thus, the meme token reacted to his recent update with bullish price movements.

Dogecoin price on a bullish trajectory

The token displays bullishness after gaining 10% within the past day. Notably, Dogecoin broke the crucial resistance at the $0.10 mark, currently changing hands at $0.1053.

DOGE 1D Chart on Coinmarketcap

The 60% increase in daily trading volume paints a green picture for Dogecoin. The latest move past the hurdle at $0.10 opened the doors for more upswings.

DOGE targets the vital value area at $0.15. However, robust bullish moves would be essential to overcome the nearest obstacles for such a move.

First and foremost, the Average Directional Index shows the current momentum isn’t massive enough to support sustained rallies.

The ADX indicator reads 25, and it has to climb to the 50-70 range to confirm stable uptrends.

Furthermore, DOGE’s price approaches the Donchain Channel’s upper border at $0.12307, where it can encounter significant resistance.

Failure to overcome this hurdle would trigger declines toward the support at $0.10179. Dogecoin should maintain its current momentum to fly well over $0.12307 to attain the target of $0.15.

Mixed sentiments could catalyze consolidations and even a breach of the support barrier at $0.08, coinciding with Donchain Channel’s lower border.

Nevertheless, miner trends suggest upsides for the meme coin. Moreover, the Dogecoin community remains optimistic about the asset, especially with Musk’s latest announcement.

These developments will keep Dogecoin afloat in the upcoming sessions before it outperforms amid broad-based bull rallies.

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