Dogecoin Whales Are On The Move: A Worrying Sign?

On-chain data shows the Dogecoin whales have made some big moves in the past day, a sign that could be worrying for the asset’s price.

According to data from the cryptocurrency transaction tracker Whale Alert, a few large DOGE moves have been spotted on the blockchain during the past 24 hours.

All four of these transfers are on the scale of millions in USD, suggesting that whale entities may have been behind them. The whales refer to the largest investors in the sector, who can hold some influence due to the size of their holdings.

Because of this reason, transfers from this cohort can be something to keep an eye on. How a whale moves could affect the market depends on what the whale intends to achieve with it.

Generally, it’s hard to say with certainty about such a motive, but depending on the types of wallets involved and the direction of the coins’ flow, some hints can be gathered.

The two oldest transfers from the past day involved the movement of $5.1 million and $7.5 million worth of Dogecoin to the Robinhood platform. Below are the details for the older of the two transactions.

As is visible, an unknown wallet was the sender of the transaction. Such wallets are unattached to any known centralized platform and will likely be investors’ self-custodial addresses.

When an investor shifts their coins from their wallets to exchanges, there is always a possibility the move has been made for selling purposes. As such, this deposit from the whale could be bearish for DOGE. The same would go for the other Robinhood deposit from the past day.

Besides these two deposits, there has been one more exchange inflow transaction in this same window to the cryptocurrency exchange Coinbase.

This $5.9 million deposit comes after Dogecoin recovered from its recent lows, so the whale may be looking to sell while some gains remain.

The final transaction from the last 24 hours is the largest of the four, as it has seen DOGE worth a whopping $41.5 million shift across the network. However, this transfer is unremarkable because only unknown addresses have been involved in it.

It’s hard to say what this transaction was made for, as it could be anything from a peer-to-peer (P2P) transfer to a simple change of wallets. Thus, unlike the other exchange deposits, this transfer could end up causing volatility in any direction, or it may not even have any influence.

Dogecoin had recently plunged towards the $0.087 level but has since recovered above the $0.091 mark.