$54 Million In Dogecoin Exits Binance As Price Crashes 9%: Sign Of Buying?

On-chain data shows a Dogecoin whale has withdrawn a large sum from the cryptocurrency exchange Binance, a sign that may be bullish for the DOGE price.

According to data from the cryptocurrency transaction tracker service Whale Alert, a massive transaction has been spotted on the Dogecoin blockchain during the past day.

The transfer in question saw the movement of 175,274,112 DOGE across the network, worth around $54.7 million at the time the sender executed the move.

Given the size of the transaction, it’s likely that a whale entity was responsible for it. Whales are the large investors in the market who own notable amounts of the asset in their wallet balance.

The influence of any investor on the network goes up the more coins that they hold, so the whales with their massive holdings can have an important presence. As such, their behavior can be something to watch for.

How the moves of a whale might affect the asset comes down to what they intended to achieve with it. Due to the anonymous nature of the blockchain, though, it’s often not easy to comment on the intent behind any transfer.

Luckily, in the case of the current transaction, there is one identifiable feature attached to it: a wallet associated with a centralized platform. Below are the address details for this Dogecoin whale transfer.

As is visible, the receiving address in the case of the transfer was an unknown wallet, meaning that it can’t be traced to any known central entity. Such addresses are likely to be the investors’ personal wallets.

The sending address, on the other hand, was attached to the cryptocurrency exchange Binance. Moves like this, where tokens flow from an exchange to a self-custodial address are known as exchange outflows.

Generally, the investors take their Dogecoin off into self-custody when they plan to hold into the long term, so exchange outflows can have bullish implications for the memecoin’s price.

The whale has made this latest exchange outflow following a sharp decline in the price of Dogecoin, so it’s possible that these were all tokens freshly bought at the lower price. If so, this would naturally be a positive sign for the asset, as it suggests the large investors think this dip of the memecoin is worth accumulating at.

At the time of writing, Dogecoin is floating around $0.32, down more than 10% over the past week.