Dogecoin Whales Unloading Tokens: Is $1 Still Visible for DOGE This Year?
Elon Musk’s recent announcement about accepting Dogecoin (DOGE) as payment for Tesla merchandise has generated positive sentiment for the meme-inspired cryptocurrency. Despite this, large DOGE holders, known as “whales,” have been selling off their holdings, causing some concern among investors. As a result, the price of DOGE has dropped by over 4% in the past 24 hours.
Overview
Data from Whale Alert on September 4 revealed that a significant amount of DOGE, approximately 119.67 million coins worth $11.70 million, was transferred from an unknown wallet to the trading platform Robinhood, signalling a substantial reduction in confidence from large holders.
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Additionally, on-chain data from IntoTheBlock indicated a decrease in the activity of wallets holding at least 0.1% of DOGE’s circulating supply since the beginning of September. Notably, the inflows decreased from 229.49 million to 27.96 million DOGE per day, and outflows experienced a significant increase of 80.7%.
These trends have led to a loss of confidence from major investors, contributing to a bearish sentiment regarding Dogecoin’s future outlook. Despite Elon Musk’s confirmation of DOGE payments for Tesla products and the dismissal of the Dogecoin manipulation case against Musk and Tesla, the cryptocurrency has not experienced any significant price gains.
Today, DOGE’s price experienced a 3% decline and currently sits at $0.0963, with an intraday low and high of $0.09298 and $0.1005, respectively. The weekly chart indicates a pullback in DOGE’s price.
Furthermore, DOGE’s futures open interest (OI) today saw a 3.5% decrease to $446.31 million, raising concerns among investors. The coin’s relative strength index (RSI) is at 40, suggesting downward pressure on the asset.
Conclusion
Overall, despite bullish developments in the broader cryptocurrency market, uncertainty surrounds DOGE’s future price action, with the cryptocurrency’s potential rally to $1 this year currently appearing bearish. However, given the volatile nature of the market, crypto market participants are closely monitoring DOGE for any potential shifts in price action.
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Meet Daniel Abang: Crypto guru, content creator, and analyst. With a deep understanding of blockchain, he simplifies complex concepts, guiding audiences through the ever-changing crypto landscape. Trusted for his insightful analysis, Daniel is the go-to source for staying informed and empowered in the world of cryptocurrency.
