A recent Dogecoin whale transaction has raised concerns about where DOGE’s price might be headed next. While large transactions are not new to the leading meme coin in the space, the destination of the transaction is what’s important.
Dogecoin Whale Sends $5 Million To Exchange
In a recent transaction that was flagged by on-chain tracker Whale Alert, a Dogecoin whale made a massive transfer of tokens to a centralized exchange. The transaction was carrying a total of 67,881,717 DOGE tokens, which were valued at over $5 million at the time of the transfer.
As highlighted by the on-chain tracker, the transaction was headed toward Coinbase, a centralized crypto exchange. This destination could help to tell the reason why the whale made this transaction and probably figure out what kind of impact it could have on the price of DOGE.
One of the reasons why investors move coins from their personal wallets to centralized exchanges is to sell. This is because centralized exchanges provide higher liquidity, especially for larger investors, and fees on these exchanges are often lower.
If this is the main reason why the Dogecoin whale moved the coins to Coinbase, then the price of DOGE would probably feel some selling pressure as the whale dumps their holdings.
DOGE bulls still holding $0.075 support | Source: DOGEUSDT on Tradingview.com
Will DOGE Fall To $0.7?
While such a large sale would definitely put sell pressure on Dogecoin, the impact would likely be short-lived. One of the reasons for this is that DOGE’s indicators continue to flash bullish. This is seen across both the 50-day and 100-day moving averages. Because investors are still willing to buy the cryptocurrency for a higher price than they did the last few months, demand would likely rise up to meet this supply.
This means that DOGE, especially in the short term, would probably hold its current level. A 5% decline, at most, is expected before DOGE picks up steam once again. In this case, the bulls will remain in charge even with such large sales taking place.
The $0.075 support is expected to hold until the end of the week. However, the low momentum that often characterizes the weekend markets could see the price swing either way. But such a move is still highly dependent on what market leader Bitcoin (BTC) does as well.
For now, DOGE’s price is still steady at $0.07545, recording minute losses of 0.06% in the last 24 hours. In contrast, the meme coin is maintaining its weekly gains, up 3.06% in this time frame.