According to U.Today, a significant $30 million withdrawal of Dogecoin (DOGE) from exchanges has been observed recently. This substantial outflow coincides with a broader market decline, leading to cryptocurrency liquidations soaring to $200 million. Despite the market-wide collapse, the shift of DOGE into self-custody may be a bullish sign for the meme coin.
The daily DOGE/USDT chart shows a pronounced declining trend, with volume analysis indicating increased trading activity accompanying the price drop. Typically, a drop in price coupled with increased volume suggests panic selling. However, DOGE may be nearing oversold territory, as the Relative Strength Index (RSI) is currently around 35. This could indicate that selling pressure may soon diminish.
The $30 million DOGE outflow from exchanges is a notable indicator of whale activity. Large holders often signal a shift toward long-term holding and self-custody when they remove their assets from exchanges. By decreasing the amount of DOGE available on exchanges, this movement may reduce selling pressure and improve conditions for price stability or even a rebound. This suggests that whales are confident in the asset's future, moving their DOGE to self-custody in anticipation of further price growth rather than immediate selling.
The market-wide correction has impacted almost all digital assets, including DOGE. Withdrawals and the move toward self-custody might indicate that Dogecoin's worst days are behind it. With lower exchange holdings, the price of DOGE may stabilize, potentially leading to a gradual recovery if current support levels hold.
