Dogecoin recently saw a large outflow from exchanges, with $30 million worth of DOGE being withdrawn. This could be a positive sign for the asset. The overall market decline has led to cryptocurrency liquidations soaring to $200 million, coinciding with this outflow.
Recently, $30 million worth of Dogecoin was withdrawn from exchanges. This coincided with a market decline, leading to cryptocurrency liquidations reaching $200 million.
Dogecoin’s $30 Million Withdrawal from Exchanges: A Bullish Sign?
Recently, $30 million worth of Dogecoin was withdrawn from exchanges. Despite a market-wide collapse, this significant shift of DOGE into self-custody may be a bullish indication for the meme coin. A pronounced declining trend can be seen in the daily DOGE/USDT chart.
Volume analysis shows that the price decline is accompanied by an increase in trading activity. When there is a drop in price and an increase in volume, panic selling is usually indicated. However, DOGE may be approaching oversold territory given that the RSI is currently at about 35. This may indicate that there will soon be less pressure to sell.
The $30 million DOGE outflow from exchanges is a noteworthy indicator of whale activity. Large holders typically signal a shift toward long-term holding and self-custody when they remove their assets from exchanges.
Dogecoin Whales Withdraw $30M: Signals Price Stability
The recent withdrawal of $30 million worth of Dogecoin from exchanges may decrease the amount of DOGE that is readily available for trading. This movement could lessen selling pressure, creating better conditions for price stability or even a rebound. It suggests that whales are confident in the asset’s future, as they are choosing to move their DOGE to self-custody.
When major investors move their DOGE to self-custody, it could mean they are preparing to hold it for the long term in anticipation of future price growth, rather than planning to sell it immediately. This behavior indicates a positive outlook for Dogecoin, especially during a period when almost all digital assets, including DOGE, have been affected by a market-wide correction.
The shift towards self-custody and reduced availability of DOGE on exchanges might suggest that the worst days for Dogecoin are behind us. With less selling pressure due to lower exchange holdings, DOGE’s price could stabilize. If the current support levels hold, a gradual recovery for DOGE may be on the horizon
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
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