Dogecoin price faces increased uncertainty following a significant transaction by a large DOGE holder, or “whale,” who transferred a substantial amount to an exchange. The large transaction exceeded $7 million worth of DOGE.
This transaction was brought to attention by a member of the DOGE community. Currently, it is generating concerns within the cryptocurrency space, potentially exerting selling pressure on the altcoin.
Dogecoin Whale Transfer Sparks Concerns
A notable development was a Dogecoin community member observing a substantial transaction exceeding $7 million in DOGE on Tuesday. The transaction involved over 85 million DOGE and raised eyebrows due to its amount. Of particular concern was the destination—Robinhood, a platform commonly used by crypto holders for selling.
Typically, users leverage centralised exchanges for low fees and ample liquidity when conducting sizable transactions. What adds intrigue is that the whale’s address, following the transaction, now holds no DOGE. This suggests a potential complete exit from their Dogecoin position.
DOGE Price Faces Uncertainty Amidst Large Whale Sell-Off
The outlook for DOGE’s price is uncertain as the possibility of a substantial whale divestment looms. Should this whale indeed proceed with selling a significant amount of Dogecoin, the existing sell pressure on the meme coin could intensify. This will contribute to a further decline in its value.
The repercussions of this sell-off are already evident in DOGE’s recent performance, witnessing a notable 3.28% drop in the last day. This stands in contrast to Bitcoin’s recent recovery from previous lows.
However, a potential shift in the sell pressure narrative might be on the horizon as bids for Dogecoin show signs of resurgence. Data from IntoTheBlock indicates buyers are reentering the market, signalling a reversal of the prevailing trend. If this momentum continues, Dogecoin will likely reclaim the $0.1 mark.
As of the current writing, Dogecoin is trading at $0.08994, reflecting a 2.37% decline on the weekly chart. Its market capitalisation is $12.79 billion, positioning it as the 10th-largest cryptocurrency, trailing behind Avalanche (AVAX).