Dogecoin Drops 6% On Movement By Big Investors (Whales)
Recently, a big Dogecoin transaction done by a whale was spotted, which sent the coin's price down by 6%. The transaction in question involved the movement of funds from the wallet to an exchange. Generally, such movement of coins is followed by the eventual sell-off of the said assets and is taken as a bearish signal.
According to data, around $26 million worth of Dogecoin was moved in the recent transaction. This amounts to 213300000 Dogecoin. Experts believe that these large transactions are usually done by a single whale, but it can also be a wallet made up of different investors.
Dogecoin Sent To Coinbase Exchange
The Dogecoin transfer originated from an unknown wallet and was sent to a wallet owned by the Coinbase crypto exchange. Such addresses are either personal wallets owned by a single person or multiple people. However, they usually do not belong to centralized exchanges, which makes this transfer even more interesting.
Since the end destination of Dogecoin was the Coinbase exchange, we can classify it was an exchange inflow. Generally, such transfers are made for selling purposes which is the main reason why the Dogecoin price turned bearish.
Furthermore, a similar huge Doge transfer was made a little earlier than the one mentioned above. The 2nd transfer was made to the Binance crypto exchange and was worth $5 million. In total, 43677440 Dogecoins were transferred to the Binance exchange.
When we consider how more than one whale has dumped Dogecoin in succession, it doesn't send a good signal for the Dogecoin price. And this turned out to be true, as the price of Dogecoin dropped 6% after these transactions.
For now, the Dogecoin price is around $0.1157 but if we look at its price in the previous month, the coin has witnessed an increase of 82%.
However, the general direction of crypto market will also have an effect on the Dogecoin price. Considering how the BTC and ETH dropped few days ago due to rate hikes in USA, that might be another reason for the decline in Dogecoin price.