DOGE Falls 16% in 24 Hours Amid Whale’s Massive Sell-Off

DOGE Falls 16% in 24 Hours Amid Whale's Massive Sell-Off

Dogecoin (DOGE), the largest memecoin by market value, experienced a sharp decline as the cryptocurrency market faced an overall downturn. Over the past 24 hours, DOGE lost significant value, further impacted by a large sale from a major investor or “whale.” This sale caused the price to drop below the critical support level of $0.1, triggering widespread bearish sentiment regarding Dogecoin’s future profit potential.

Related article: Dogecoin Price Surges: Technical Analysis and Future Predictions

Whale Transfers $41 Million In Dogecoin To Binance

On July 5, on-chain transaction tracker Whale Alert reported that a cryptocurrency whale transferred approximately $41.08 million worth of 400 million DOGE to Binance. This marked a significant development in the altcoin’s market dynamics. Despite this transfer, the whale, whose wallet address starts with DU8gP…, still holds around $36.59 million worth of 379.80 million DOGE. 

Earlier this year, the whale accumulated about 1 billion DOGE through Binance, strategically selling assets during the bull cycle. This massive sale significantly impacted investor sentiment, with many seeing it as a loss of confidence in the altcoin’s short-term gains. Although the whale still holds a large amount of DOGE, the immediate impact of the sale was negative. 

Related article: Dogecoin Soars: What’s Fueling the 6% Surge and Why Investors Are Bullish?

The heavy selling pressure pushed DOGE’s price below the $0.1 support level, intensifying the downward trend. Current data shows DOGE’s price fell by 16.20% in the last 24 hours to $0.09563. Over this period, the price ranged between $0.09379 and $0.1138. The recent price drop reflects the altcoin community’s reaction to the whale’s sale.

Derivative Market Indicators

Furthermore, according to Coinglass data, Dogecoin’s Open Interest (OI) in futures contracts decreased by 14.88% to $503.97 million, mirroring the price drop. In contrast, derivative volume increased by 117.44% to $3.28 billion, indicating mixed feelings in the market. These conflicting data points suggest that while there is significant selling pressure, some investors are positioning themselves for potential future movements.

Currently, DOGE’s Relative Strength Index (RSI) is around the 24 level, indicating that the altcoin is in the oversold zone. This suggests a potential price recovery for the altcoin. However, given the prevailing bearish trend and recent significant sales, the short-term outlook for Dogecoin remains negative and uncertain.

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Disclaimer: The information in this article should not be considered financial advice, and FXCryptoNews articles are intended only to provide educational and general information. Please consult with a financial advisor before making any investment decisions.

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