Dogecoin Drops 7% As Whales Make Big Move

Dogecoin has fallen over 7% over the course of the past day as data shows whales made some big movements.

Dogecoin whales move large amounts on-chain

According to data from the cryptocurrency transaction tracker service whale alertFive major transactions have been observed on the DOGE blockchain during the past 24 hours.

Three of these transfers saw movement of the same amount of meme coin: 600,000,018 DOGE worth $42,946,921 at the time of the transaction.

The other two transactions were smaller and saw 337,520,424 DOGE ($24,159,104) and 399,999,992 DOGE ($28,631,279) travel respectively across the network.

As all of these transfers saw the movement of such a large amount of Dogecoin, it is likely that whale entities were behind them. Whales are humble holders who carry significant amounts of money in their wallets, which makes them powerful entities on the network.

Surprisingly, all these transfers were done at the same time. Big whale transactions like this aren’t exactly an everyday occurrence, so seeing five of them together is interesting to say the least.

Based on this and the fact that the three transactions saw the movement of the same number of coins, the natural conclusion would be that the same entity was behind these transfers.

In fact, as blockchain data will confirm, all of these transfers involve not only the same sending addresses but the same destinations. This would mean that the investor or group of investors behind these transactions must have made all these moves with the same goal in mind.

Here are some additional details about one of these Dogecoin transactions that may provide clues as to what caused the transfer:

Looks like this transfer required a fee of just 2 DOGE to go through | Source: Whale Alert

Here both the sending and receiving addresses appear to be anonymous wallets, meaning they are unattached to any known centralized platform (such as an exchange). Typically, such wallets are personal wallets of investors, which they can use to hold their coins for extended periods of time.

It is always difficult to say what the purpose of a transaction between two unknown wallets could be, as it could be anything from a simple change of address to a sale made through over-the-counter (OTC) deals. Is.

Typically, investors deposit on exchanges when they aim to sell, so it is possible that the transactions in the past day were not due to whales planning to sell.

However, as mentioned earlier, there is still a possibility to sell them through OTC deals. In the last 24 hours since these transfers were made, Dogecoin has seen a sharp decline of 7%.

The crash is not limited to Meme Coin, as in fact most of the market has seen bearish price action during the past days. It seems like the impetus for this decline is the US SEC suing cryptocurrency exchange Binance.

Given these circumstances, it is possible that the Dogecoin whales in question may have ultimately participated in the selloff.

doge price

At the time of writing, Dogecoin is trading around $0.0667, down 8% over the past week.

The value of the memecoin seems to have plummeted hard today | Source: DOGEUSD on TradingView

Featured Image from Kanchanara on Unsplash.com, Chart from TradingView.com