Dogecoin (DOGE) price crashed 8% on Saturday, November 18, after Elon Musk’s SpaceX announced the loss of its Starship spacecraft.
DOGE price crash following the spacecraft failure brings Dogecoin’s long-running entanglement with Elon Musk to the fore.
Dogecoin Miners took advantage of last week’s price rally to offload 220 Million coins from their reserves.
Dogecoin price experienced a rapid 8% drop on Saturday, tumbling from $0.085 to $0.078, following an ill-fated test flight by Elon Musk, SpaceX’s space exploration team. On-chain data analysis examines how DOGE coin price could respond in the week ahead.
Dogecoin Price Tumbled After SpaceX’s Starship Crashed
Dogecoin’s long-running “affiliation” with Elon Musk was again brought to the fore this weekend. The billionaire’s Tesla CEO’s, aerospace company reported the loss of its Starship spacecraft during a crucial test flight on Saturday, marking a significant setback for SpaceX’s deep-space launch system.
Over the last few years Elon Musk has tacitly expressed his preference for Dogecoin multiple times in a series of cryptic tweets, including a Saturday Night Live cameo. In effect Dogecoin prices have often moved in correlation with Elon’s public statements and notable events involving his companies.
This phenomenon reared its head once again this weekend. After SpaceX announced the Starship crash, within hours of the news Dogecoin price began to wobble.
Dogecoin Price Performance after SpaceX Spacecraft Crash | November 2023 | Source: TradingViewThe price chart above Dogecoin market value crashed by 7.5% before the close of November 18. And the panic sell that has ensued in the subsequent 24 hours barely further exacerbated the price decline to 10% as it tumbled from $0.085 to a weekly low of $0.078.
Miners Had Been Selling Way Before the Spacecraft Crashed
Media headlines have majorly attributed the negative DOGE price action at the weekend to the SpaceX spacecraft crash due to the historical significance of Elon Musk’s previous Dogecoin statements.
However, a deeper inquest into recent on-chain transactions shows that Dogecoin miners may have played a more central role in the price correction. According to the data pulled from IntoTheBlock, a blockchain analytics platform, the miners began selling around November 12, when prices first broke above $0.08.
The chart below shows that the miners held a total reserve balance of 4.46 billion DOGE on November 12. But after a week-long sell off, their balance now stands at 4.24 billion DOGE as of November 19.
Dogecoin (DOGE) Miners’ Reserves – Source: IntoTheBlockThe Miners Reserves chart pictures the recent trading activity of Dogecoin node validators. It essentially tracks the real-time changes in the total coins deposited in wallets controlled by recognized mining companies and mining pools.
The Dogecoin chart clearly shows the miners have sold off 220 million DOGE between November 12 and November 19. When valued at the 7-day SMA DOGE price $0.083, the coins sold over the past week are worth approximately $18.2 million.
Hence it appears the bearish trading activity among the miners was also a major driver behind the Dogecoin price correction at the weekend.
As the negative sentiment surrounding the spacecraft crash wanes, Dogecoin price rebound prospects next week, may be significantly impacted by the miners’ next move.
Dogecoin Price Forecast: More Consolidation Before Rebound
Despite rejecting at the $0.000085 territory, the bulls have shown some resilience to maintain a strong buying momentum.
The Parabolic SAR identifies vital reversal points in an ongoing price trend. Currently, the DOGE Parabolic SAR indicator dots point toward $0.07, which is well below the current price of $0.000009. This alignment is a strong indication of an imminent Dogecoin price rebound.
If the bulls seize control as predicted, DOGE price will face initial resistance at the previous local high of $0.086. However, a decisive breakout from that resistance could see Dogecoin reclaim $0.1.
Dogecoin (DOGE) Price Prediction | Source: TradingViewOn the flip side, the Dogecoin bears could invalidate that prediction if they successfully force a downswing below $0.07. However, the bulls will likely mount a major buy wall around the Parabolic SAR point at $0.071 price range. If that support territory holds firm, Elon Musk’s “favorite” memecoin by will likely avoid a major bearish reversal.