Dogecoin Price Tumbles As Whale Dumps 90M DOGE to Coinbase, What’s Next?

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As a seasoned crypto investor with a keen interest in Dogecoin (DOGE), I’ve witnessed firsthand the recent price fluctuations and the whale transaction that triggered renewed concerns within the community. The massive selloff of 90 million DOGE coins to Coinbase, as reported by Whale Alert, has added significant bearish pressure to an already volatile market.

Dogecoin, the cryptocurrency with the largest market capitalization based on memes, has caused quite a stir in the global crypto community recently. After experiencing significant price growth, its value has taken a downturn, leaving many wondering about its future direction. This price drop coincides with a large-scale DOGE sale by a prominent investor within the last 24 hours, fueling concerns among investors regarding potential price fluctuations for Dogecoin.

As an analyst, I’ve noticed some intriguing on-chain data emerging in the crypto market. Specifically, approximately 90 million coins were transferred to the centralized exchange, Coinbase, today. This substantial sell-off has raised red flags among investors due to its potential impact on the token’s supply and demand dynamics, intensifying the downward pressure on prices.

Whale Transfer Raises Investor Concerns

Based on the information provided by Whale Alert, a well-known cryptocurrency transaction tracker, an anonymous whale transferred 89.99 million DOGE, equivalent to around $15.18 million, to Coinbase in one transaction. The exact address of the wallet making this transaction is DRsjJ7YWiL…FwUuAkrLom.

It’s intriguing to note that an extensive examination of the wallet’s contents uncovered that all DOGE tokens had been withdrawn after a significant transaction. Remarkably, these tokens were only acquired by the wallet today, and they were swiftly moved to Coinbase exchange. This unexpected turn of events has sparked curiosity in the crypto community, with many pondering the reasons behind this transfer.

In the interim, Dogecoin’s price traded in the red, experiencing heightened volatility.

DOGE Price Falls, What’s Next?

From my research perspective, as of now, Dogecoin’s value has decreased by 2.24% within the last 24 hours and is presently being traded at $0.1662. The volatility of this meme coin is evident in its 24-hour price range, which fluctuated between a low of $0.1622 and a high of $0.1741.

The data from Coinglass highlighted approximately $4.93 million worth of Dogecoin (DOGE) being liquidated in the last 24 hours, which corresponds with the token’s decline. This large-scale liquidation event was driven by heightened selling pressure instigated by a significant transfer.

Additionally, Open Interest for DOGE declined by 4.59% to reach $987.85 million, while derivatives volume saw a decrease of 16.96%, amounting to $3.15 billion. This information underscores waning investor enthusiasm towards DOGE and, in conjunction with heightened selling pressure, may explain the token’s present market turbulence.

As a crypto investor, I’ve noticed that the Relative Strength Index (RSI) for this token has been lingering around 56. This suggests that there’s a slight upward pressure on the token, as it hasn’t yet reached overbought or oversold levels. According to a recent analysis by CoinGape Media, if the coin manages to surpass the $0.17 price mark, there’s a potential resistance level at $0.3. However, if the token slips below the crucial support of $0.16, it could potentially retrace back to the descending trendline at $0.14.

Over the past week, DOGE has been climbing higher, registering approximately a 9% increase in value.

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2024-05-22 18:30