Tracking platform Whale Alert, known for monitoring cryptocurrency and blockchain activities, has detected a significant deposit of Dogecoin (DOGE) during the recent decline in DOGE prices. An unidentified large investor, often referred to as a “whale,” transferred more than 70 million DOGE tokens, worth a substantial amount, to Binance, the global leader in cryptocurrency exchanges. This high-value transaction follows closely on the heels of a 10% drop in Dogecoin’s price.
Whales Move Over 70 Million Dogecoin To Binance
The sudden drop in Dogecoin’s price might have caused anxiety among investors since large holders (often referred to as ‘whales’) seem to be rapidly selling off their coins. Despite analysts and traders anticipating a quick increase in Dogecoin’s value, the continuous selling could lead to more setbacks and potential slowdowns in the market’s progression, causing disappointment and worry among many investors.
On January 7th, Whale Alert identified a significant Dogecoin transaction. The cryptocurrency monitor indicated that around 70,081,124 DOGE tokens were transferred anonymously to Binance by a ‘whale’. This massive deposit, valued at over $27.6 million, has sparked interest in the crypto market due to its size, as such large-scale transactions from whales are usually noteworthy.
Generally speaking, shifting an asset from a digital wallet to a cryptocurrency exchange such as Binance might suggest that the investor intends to sell off those assets. This is usually the case because investors transfer their holdings to exchanges when they are preparing to cash out their positions.
The substantial transfer of 70 million DOGE indicates a significant market shift that might boost volatility and possibly cause more drops for Dogecoin. As I write this, CoinMarketCap’s figures reveal that the price of Dogecoin has dropped by over 11.2% in the last day. Given its sensitivity to market fluctuations, further sell-offs could intensify concerns about additional drops, potentially increasing the downward pressure on Dogecoin.
Significantly, crypto analyst Ali Martinez has mentioned on his platform (previously Twitter) that the TD sequential indicator for Dogecoin suggests a sell signal in its daily chart. This suggests that a drop in Dogecoin’s price might occur, as such signals are often followed by widespread liquidations which can trigger a downward trend according to Martinez.
Analyst Cautions Against Selling DOGE
Following its escape from the rising triangle formation, Dogecoin seems to have made its way back to the triangle’s peak, exploring it as a possible support area and preparing to rebound from this level to maintain its bullish momentum. Cryptocurrency analyst Trader Tardigrade posted a chart on platform X, suggesting that the peak of the rising triangle might act as a springboard for a Dogecoin price surge, potentially reaching a new all-time high of $0.95.
As a result, investors of Dogecoin are advised to remain steadfast during this vital phase in its price fluctuations. Trader Tardigrade has stressed that it’s unwise to sell off too soon or short DOGE at this point, as such actions might cause you to miss the anticipated price spike towards a new all-time high.
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2025-01-09 00:04