January’s Market Performance: A Shared Downtrend
As the crypto market faced bearish conditions this January, both Dogecoin (DOGE) and Shiba Inu (SHIB) experienced a parallel decline, each shedding 17% in market value up to January 26th. This synchronized movement reflects the intertwined nature of the two leading memecoins.
On-Chain Data: Dogecoin Miners’ Selling Spree
Recent on-chain data has spotlighted a significant sell-off from Dogecoin miners, totaling approximately $22.6 million over the past quarter. This activity, captured by IntoTheBlock’s miners’ reserves chart, shows a decrease from 4.6 billion DOGE to 4.3 billion DOGE held by miners, indicating a potential for increased market pressure and a decoupling of DOGE’s price performance from SHIB’s.
Miners’ Influence and Market Implications
In the proof of work ecosystem, miners play a pivotal role by validating transactions and maintaining network security. Their decision to sell can often be a bearish indicator, suggesting a possible dilution of market supply and a subsequent price drop. This trend could give Shiba Inu the upper hand in the coming month.
Technical Analysis: Critical Support and Resistance Levels
The Global in/out of the money (GIOM) data from IntoTheBlock provides insights into potential support and resistance levels. A key support level for Dogecoin lies at $0.07, where a large cluster of holders have their breakeven point. A dip below this level could trigger further losses, whereas a climb above $0.10 might signal a bullish reversal. However, resistance is likely near $0.095, where a significant number of transactions have previously occurred.
English