Monday, March 4, 2024

Dogecoin Plunges 7% As Whales Make Large Moves

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Dogecoin has plunged more than 7% during the past day as data shows that whales have made some large movements.

Dogecoin Whales Move Large Amounts On The Chain

According to data from the cryptocurrency transaction tracker service Whale Alert, five large transactions have been spotted on the DOGE blockchain during the last 24 hours.

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

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

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

Surprisingly, all of these transfers were executed at the same time. Such large whale transactions aren’t exactly an everyday occurrence, so five of them happening simultaneously is interesting, to say the least.

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

Indeed, as the blockchain data would confirm, all of these transfers have involved not only the same sending addresses but also the same destinations. This would imply that the investor or group of investors behind these transactions may have made all of these moves with the same goal in mind.

Here are some additional details regarding one of these Dogecoin transactions, which may provide hints about the reason behind why the transfers may have been done:

Dogecoin Whale

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

Both the sending and the receiving addresses here seem to be unknown wallets, meaning that they are unattached to any known centralized platform (like an exchange). Generally, such wallets are investors’ personal wallets, which they may use for keeping their coins in for extended periods.

It’s always hard to say what the purpose behind a transaction between two unknown wallets may have been, as it could be anything from a simple change of addresses, to a sale made through over-the-counter (OTC) deals.

Usually, investors deposit to exchanges when their aim is selling, so it’s possible that the transactions in the past day may not have been because of the whale planning to sell.

However, as mentioned before, them being done for selling through OTC deals is still a possibility. In the last 24 hours, since these transfers have been made, Dogecoin has observed a sharp plunge of 7%.

The crash isn’t limited to the meme coin, as in fact most of the market has seen bearish price action during the past day. The impulse of this plunge seems to have been the US SEC suing the cryptocurrency exchange Binance.

Given these circumstances, it’s possible that the Dogecoin whale in question may have participated in the selloff after all.

DOGE Price

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

Dogecoin Price Chart

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

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