- A renowned Dogecoin whale moved more than $15.5 million worth of Dogecoin (DOGE) to Binance.
- With the scare of a selloff, the Dogecoin community needs to nurture plans for any potential aftermath.
There has been a growing number of massive Dogecoin (DOGE) movements in crypto trading platforms which have sent a bearish signal that a plausible selloff is underway. According to the crypto data analytics platform, Whale Alerts, one of the top 20 Dogecoin (DOGE) whales just transferred a total of 190,840,745 tokens worth approximately $15.5 million from an unknown account to Binance.
The ease of movement of cash in and out of the crypto trading platform is the underlying bedrock of the new crypto economics in the Web3.0 world of today. As funds movements are not a special occurrence, what is special is the huge sum that is being moved per time. Additionally, Whales are known as those who hold the stability of any digital currency, and actions from them can make or mar the price momentum of such an asset.
Dogecoin is even more prone to such massive movements as the transfer has very few definitions. Top on the list of these definitions is the fact that the funds are being prepared for liquidations on the exchange. Should the market price be in this negative sentiment, then we can expect the price of Dogecoin to slip negatively in the near term.
Dogecoin performance outlook
The current price action and the liquidation data of Dogecoin show different results entirely. The premier memecoin is changing hands at a price of $0.08115, down by 0.32 percent over the past 24 hours and by 7.52 percent in the trailing 7-day period.
This data shows the DOGE token is being priced in a bearish way by traders, however, little or no known liquidation is going on at the moment. According to data from CoinGlass, the Binance exchange where the Whale supposedly moved the funds to have recorded just a total of $31.84 in total liquidations over the past 24 hours.
There is no evidence that Dogecoin is featured in the top 12 most liquidated digital currencies per the analytics service provider. The top 5 most liquidated crypto include Bitcoin (BTC), Ethereum (ETH), Optimism (OP), Polygon (MATIC), and Aptos (APT) respectively.
Based on this data, it is glaring that the intention of the Whale remains unclear in transferring the funds. Should they be designated for the selloff, then the time has perhaps not been adjudged as right by the said address owner.
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Preparing for eventualities
There is no rule that mandates any crypto owner to HODL their holdings and there is no structure for liquidation should a whale choose to do so. As a result, the Dogecoin Whale could decide to offload the coin all in one go, or in successions.
Either approach chosen by the Whale, the Dogecoin community needs to prepare for eventualities. Rather than wait for Elon Musk’s tweets, the Dogecoin ecosystem must advance the utility surrounding the protocol in order to foster more natural buy-ups in the months ahead.
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