Dogecoin (DOGE) faced a substantial sell-off on Thursday as a major holder transferred a staggering 400 million DOGE tokens to Binance.
According to Whale Alert, a platform monitoring large cryptocurrency transactions, the anonymous whale moved approximately $41.08 million worth of tokens from an undisclosed wallet to the Binance exchange, coinciding with the memecoin’s drop below the crucial support level of $0.1.
However, in a surprising turn of events, a few hours later, the whale withdrew 50.4 million DOGE tokens, valued at around $4.8 million. This sudden reversal suggests a possible change in strategy or sentiment by the investor, opting perhaps to retain a portion of their holdings amidst the volatile market conditions.
At press time, the whale retained 379.8 million DOGE, valued at approximately $37.21 million, according to data from Blockchair. Notably, analysis of the transaction history suggests that this whale had accumulated around 1 billion DOGE from Binance earlier in the year, indicating a strategic move amidst market fluctuations.
Meanwhile, the whale’s move occurred amid broader turmoil in the cryptocurrency market. DOGE witnessed a flash crash to as low as $0.93 following fresh fears of a potential sell-off of around $9 billion worth of Bitcoin by creditors of the infamous Mt. Gox exchange.
Further worsening the bearish sentiment, the German government’s ongoing sale of approximately 50,000 Bitcoins added to the market’s fear, uncertainty, and doubt (FUD). Over the past 24 hours, approximately $640 million worth of cryptocurrency assets have been liquidated, according to data from Coinglass. Bitcoin led the liquidation figures, followed closely by Ethereum and then Solana. Dogecoin also faced substantial liquidations, sitting in the fifth position with around $11 million worth of positions closing in the red.
Despite these challenges, market analysts view the recent events as indicative of waning confidence in Dogecoin’s short-term profitability. Some analysts like Cryptolicca suggest that DOGE’s price may find support within its current trading range of $0.17 to $0.95 “level 2.”
Notably, according to data from Intotheblock, Dogecoin has established a significant demand barrier at $0.099, where over 1.14 million addresses collectively hold 11.36 billion DOGE. Should the price drop further, strong support is anticipated around $0.081, backed by holdings from 1.16 million addresses totaling 23.7 billion DOGE.
Additionally, there has been a notable uptick in DOGE accumulation. Data from IntoTheBlock reveals a steady increase in addresses with positive balances, marking a positive trend for DOGE. As of June 17, there were approximately 6.48 million addresses with nonzero balances, a significant rise from 4.77 million on the same day in 2023. This surge in network activity and accumulation of assets bodes well for Dogecoin’s potential upward price movement in the future.
At press time, DOGE was trading at $0.0988, reflecting a 10.78% drop over the past 24 hours.