The price of Dogecoin exemplified quite volatile action today. Amid the turmoil, a whale dumped 90M DOGE into Coinbase, fueling bearish sentiment among crypto investors.
Dogecoin, the largest meme cryptocurrency by market cap, has stirred up a whirlwind of speculation in the global crypto community as its price has lost upside momentum after witnessing significant gains.
The price drop comes against the backdrop of a massive DOGE sell-off recorded by a whale in the past 24 hours, raising questions among investors about DOGE’s future price movements. are
Notably, as shown by on-chain data circulating in the broader crypto market, a staggering 90 million coins were sold to CEX, Coinbase today. This massive offloading has raised bearish fears among investors, as it significantly increases token selling pressure.
Whale Transfer Raises Investor Concerns
According to data released by WheelAlert, an on-chain transaction tracker, 89.99 million DOGE, worth $15.18 million, was offloaded by Wheel to Coinbase in a single transaction. The transaction was made through an unknown wallet address, DRsjJ7YWiL…FwUuAkrLom.
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Surprisingly, upon investigating the wallet holdings, it was found that the whale had 0 tokens left after the massive transfer. Additionally, the wallet received only these DOGE tokens today, and immediately transferred them to the Coinbase exchange. This has raised eyebrows in the global crypto circle, with the market speculating on the possible motivation behind the move.
In the interim, the price of Dogecoin traded in the red, experiencing extreme volatility.
DOGE Price Falls, What’s Next?
As of this writing, Dogecoin price has reflected a 2.24% price drop in the last 24 hours and is currently trading at $0.1662. Memecoin’s 24-hour low and high are $0.1622 and $0.1741, respectively, illustrating the immense volatility.
Coinglass data underscored substantial DOGE liquidation over the past 24 hours, aligning with a further token dip. DOGE liquidations totaled $4.93 million today, coinciding with increased selling pressure due to the aforementioned transfer.
Additionally, DOGE’s OI fell 4.59% to $987.85 million, followed by derivatives volume down 16.96% to $3.15 billion. This data highlights the lack of investor interest surrounding DOGE, and when combined with increasing selling pressure, may justify the token’s current volatility.
However, the RSI was hovering at 56, indicating mild upside pressure with the token neither overbought nor oversold. A recent analysis by ItsCryptoBasic, Media pointed out that the $0.3 resistance target falls short if the coin should maintain a break above the $0.17 price level. However, a slip below the key support at $0.16 could lead to a pullback towards the descending support trendline at $0.14.
It’s also worth noting that DOGE has been trading in an uptrend over the past week, gaining about 9%.