A whale sold 200 million DOGE tokens when the price of DOGE recovered and increased by more than 7%. Furthermore, Dogecoin has seen an increase in whale activity. Although whale accumulation buying pressure may drive up the price of DOGE, the most recent transaction indicates otherwise.
Whale Discharges Enormous DOGE Reserve
According to Whale Alert, the Dogecoin whale in issue recently transferred 200 million DOGE, or about $30.86 million, to the well-known trading platform Robinhood from an unidentified wallet. The cryptocurrency community is concerned about this transaction, speculating that it may be a dump that ends Dogecoin’s recent price surge.
Dogecoin has experienced a notable price increase of over 7% in the last 24 hours, fueled mainly by renewed buying power in the market. However, the extensive transfer to Robinhood suggests that a sizable stakeholder may be getting ready to sell a sizeable chunk of their ownership. This move might reverse the current upward momentum and put selling pressure on the market.
In the meantime, information from IntoTheBlock offers more details about the actions of significant Dogecoin owners. The number of large transactions has increased significantly over the last month, reaching a peak of 1.86K on Wednesday, May 14, 2024. Moreover, this rise in activity reflects the heightened involvement of whales and institutional investors.
In addition, these significant transactions increased dramatically, hitting 11.55 billion DOGE in one day. It suggests substantial movements of tokens and likely strategic positioning by whales. At the same time, prior Dogecoin whale transactions could have accounted for accumulation; the newest one points to a probable selloff by whales who wish to realize profits despite the recent increase.
Will This Dogecoin Price Rally End?
Dogecoin succeeded in rising beyond $0.15 and even got close to the $0.16 mark. The price of DOGE increased by 6.10% to $0.1556 as of this writing on Thursday, May 16. In addition, the market capitalization of the biggest meme cryptocurrency surged to $22.46 billion. In addition, DOGE’s 24-hour trading volume increased to $1.96 billion, 18.33%.
In addition, the Dogecoin futures open interest surged 11.83% to $884.94 billion, signaling fresh interest among derivatives traders. However, according to Coiglass, short sellers took the lead in liquidations with $2.51 million. While a brief,t squeeze would increase DOGE’s value, a short squeeze would make the dump considerably more consequential.
Technical indicator analysis shows that Dogecoin’s price dynamics are reaching a turning point. The 50-day Exponential Moving Average (EMA), currently around $0.1652, acts as a resistance level. A break above this barrier can indicate that a bull market is about to begin. Furthermore, it can push the price of DOGE higher to the following resistance levels: $0.18 and $0.20.
However, the 100-day EMA, currently at $0.1434, offers support and suggests a safety net against large drops. At $0.1237, the 200-day EMA acts as a crucial long-term support level. Let’s say the whales’ increased activity leads to significant selling pressure.
