- Dogecoin whales are noted pushing large amounts of the memecoin on-chain.
- The whale transactions have fueled speculations about whether a selloff is imminent.
A significant transaction observed in the Dogecoin (DOGE) network has fueled a lot of speculations with respect to the projected future performance of the world’s largest memecoin by market capitalization. According to Dogecoin analytics service provider, Dogecoin Whale Alert, a whale that was ranked in the top 20 sent a total of 215,370,734 DOGE tokens worth approximately $16.96 million to another Dogecoin whale.
🐕🪙🐋🚨🚨🚨🚨🚨🚨🚨🚨🚨🚨
215,370,734 $DOGE ($16,964,968 USD) was transferred from a #Top20 wallet to a #Top20 wallet.
Fee: 56.09 ($4.42 USD)
Tx: https://t.co/RA3wXFARYo#DogecoinWhaleAlert #WhaleAlert #Dogecoin #CryptoNews
— Ðogecoin Whale Alert (@DogeWhaleAlert) April 25, 2023
The massive movement of these funds which many may suspect is by Elon Musk comes at a time when the prices of digital assets are dwindling, an aftermath of the panic selling that was experienced based on earlier rumors that Mt Gox beneficiaries were selling off their Bitcoin. The price of Bitcoin fell as much as 9 percent following the news and other altcoins including Dogecoin followed the trail.
The funds’ movement by the two whales can mean a lot of things with different possible implications. Should the funds be a case of accumulation, then it is a positive one for the digital currency, and its community as a whole. If on the other hand, the transfer of DOGE is a selloff move, then it implies the current bearish outlook of the memecoin may be further elongated.
While the speculations possibly contributed to the 3.74 percent drop in the price of the asset, forcing it to be changing hands at $0.07996 according to MarketCap data. Amid these speculations, one crucial fundamental becomes very obvious.
According to Dogecoin Whale Alert, the transfer of 215,370,734 DOGE cost just about 56.09 DOGE, a figure that is worth just $4.45.
This makes the case for Dogecoin as a payment token whose transaction fee is just a negligible fraction of the amount being sent.
Preventing Dogecoin Selloff
As revolutionary as blockchain technology is, it does not make it feasible for the purposes of transactions to be decoded unless the senders comment on it. The speculation surrounding the massive DOGE movement still remains a source of speculation that can help suppress the price of the asset.
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Notably, it can be inferred that Dogecoin has formed a key support at the $0.06 price level, and according to on-chain data, the likelihood of a more imminent crash is low. The trading volume of the Shiba Inu-themed cryptocurrency surged by more than 49 percent over the past 24 hours with more than $700 million traded at the time of writing.
This bullish trading volume is an indicator that reveals a steady transaction activity within the network that transcends current whale actions. With more retailers becoming more engaged in the network, Dogecoin can get the sort of stability it desires to keep its price above the level that can be considered relatively healthy.
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