Dogecoin Whales Move Large Amounts, Bearish For DOGE?

Data shows Dogecoin whales have made some large moves over the past day. What does this mean for the meme coin’s price?

Dogecoin Whales Have Made Multiple Large Transactions Today

A few transactions involving a huge amount of DOGE have been spotted on the blockchain in the past day. As per data from the crypto transaction tracker service Whale Alert, the first of these transfers involved the movement of 450,000,000 DOGE, worth more than $40 million at the time of the transaction.

As the scale of this transfer is quite large, the sender is likely to be a whale. Transactions from these humongous holders are generally the ones to watch for, since they can sometimes cause noticeable ripples on the market. Naturally, these transfers can both be bullish or bearish, depending on what the whale intended to do with the move.

Here are some additional details regarding this Dogecoin whale transfer, which may have hints about the purpose behind it:

Looks like this massive transfer only costed the sender a fee of $0.09 | Source: Whale Alert

As can be seen above, both the sending and receiving addresses for this Dogecoin whale transaction were unknown addresses. “Unknown” here means that these addresses aren’t connected to any known centralized platform. So, usually, such addresses belong to personal investor wallets.

Since there isn’t any platform involved here, it’s hard to say exactly why the whale made this transfer. The holder may have been selling through an over-the-counter (OTC) deal, in which case the move could have bearish effects on the price of the meme coin.

However, it’s also possible that both the addresses here were owned by the same whale, and that they were simply restructuring their holdings across these addresses. If this scenario would be true, then Dogecoin shouldn’t feel any impact from this transaction.

According to another tracker, Dogecoin Whale Alert, there have also been two other whale transfers today. And unlike the above transaction, these moves did involve centralized platforms.

🐕🪙🐋🚨🚨🚨🚨🚨🚨🚨🚨🚨🚨

352,422,225 $DOGE ($32,672,007 USD) was transferred from a #Top20 wallet to a #Binance wallet.

Fee: 2.41 ($0.22 USD)

Tx: https://t.co/9j5AiXlXF6#DogecoinWhaleAlert #WhaleAlert #Dogecoin #CryptoNews

— Ðogecoin Whale Alert (@DogeWhaleAlert) January 31, 2023

🐕🪙🐋🚨🚨🚨🚨🚨🚨

61,918,730 $DOGE ($5,740,300 USD) was transferred from a #Top20 wallet to a #Binance wallet.

Fee: 0.844 ($0.078 USD)

Tx: https://t.co/VBVh7nqjP3#DogecoinWhaleAlert #WhaleAlert #Dogecoin #CryptoNews

— Ðogecoin Whale Alert (@DogeWhaleAlert) January 31, 2023

From the tweets, it’s apparent that these two transactions combined involved the movement of more than $38 million in the asset. Blockchain info for these two moves confirms that the same sending and receiving addresses were part of both transactions, meaning that a single whale was likely behind both of them.

The sender was a top 20 wallet here, implying that this Dogecoin whale was among the 20 largest on the network. On the receiving end of these two transfers was Binance, a cryptocurrency exchange.

As one of the main reasons why investors use exchanges is for selling purposes, transfers heading to these platforms can have bearish implications for the price of DOGE.

These deposits to Binance have come after Dogecoin has rallied around 8% in the past day, following news that Elon Musk is planning to roll out cryptocurrency payments on Twitter. If the whale truly intended to sell here, then it’s likely that it was done to take advantage of the current profit-taking opportunity.

DOGE Price

At the time of writing, Dogecoin is trading around $0.0929, up 5% in the last week.

DOGE has shot up today | Source: DOGEUSD on TradingView

Featured image from Kanchanara on Unsplash.com, chart from TradingView.com