Dogecoin Hits Major Roadblock As Whales Go On Massive Selling Spree

The Dogecoin (DOGE) price looks at risk of further declines as on-chain data show that the meme coin’s largest holders are securing profits. This follows DOGE’s recent price surge, which saw the crypto token rise to a new three-year high of $0.22. 

Data from the market intelligence platform Santiment shows a drop in the number of Dogecoin holders holding between 10 million and 100 million DOGE tokens. This suggests that some holders have offloaded their tokens to secure profits from DOGE’s recent price gains. 

This wave of profit-taking looks to have become a pattern among DOGE holders, as further data from Santimemt showed that these whales also instantly booked their profits just after DOGE enjoyed an upward trend earlier in March. Bitcoinist even reported then of a Dogecoin whale that offloaded 86 million DOGE tokens on the market. 

Considering the magnitude of these whales’ holdings, their actions are bound to exert much selling pressure on the DOGE token. That explains why the meme coin has steadily declined since rising to as high as $0.22 last week. Interestingly, Santiment, in an X (formerly Twitter) post, had recently warned of an impending sell-off by these whales. 

The crypto analytics platform noted how major dormant whales were moving their Dogecoin holdings back into circulation, which usually suggests they are getting ready to sell. Meanwhile, members of the DOGE community seem unfazed by the recent price dip, with many of them seeing it as an opportunity to accumulate more of the meme coin.

Dogecoin whales are expected to return and position themselves again once this wave of profit-taking by them is done. Besides taking profits, these whales also see this period as an opportunity to invest in DOGE at the market bottom and in anticipation of future price gains. 

Despite this recent correction, there looks to be a lot of bullish momentum on the largest meme coin by market cap, especially with analysts predicting that it could rise to $1 in this market cycle. In the short term, Dogecoin is also expected to make another run soon, with significant events coming up for the meme coin this April.

The foremost US exchange, Coinbase, is set to launch Dogecoin futures for its institutional clients on April 29. This move could cause new money to flow into the meme coin’s ecosystem and spark a price surge. DOGE Day is also happening on April 20, which will put the spotlight on the crypto token and possibly impact its price positively. 

At the time of writing, DOGE is trading at around $0.18, down over 6% in the last 24 hours, according to data from CoinMarketCap.