On-chain data shows that Dogecoin whales have made some large transactions in the past 24 hours. Here’s what they were.
Dogecoin whales make transfers to and from exchanges
According to data from the cryptocurrency transaction tracking service Whale alertSeveral large transfers were observed on the Dogecoin blockchain over the past day.
All of these movements are of a scale generally associated with whales, entities that hold huge balances on the network. In general, the influence of any investor in the market increases the greater his holdings, so members of this group can enjoy some power due to their large size.
As such, transactions conducted by whales could be worth monitoring, because even if they do not end up directly affecting the market, they can still reveal the sentiment among this group.
The extent to which moving whales will impact the asset depends on what the investor intends to do with the move. It’s usually very difficult to say anything about it with any certainty, but sometimes, processing the details can provide a hint or two.
Of the six transfers made by whales on the Dogecoin network in the past 24 hours, one occurred between two unknown wallets. These addresses are not linked to any known central exchange and are likely self-custody wallets for investors.
For this reason, it is impossible to comment on transfers between these wallets, as there is nothing identifiable about them, due to the anonymous nature of the blockchain.
However, the other five transfers have some uniqueness associated with them: they all have one aspect of the transfer: a wallet connected to the exchange. Here are the details regarding the latest DOGE transactions:
The details of the latest DOGE exchange inflow | Source: Whale Alert
As shown above, the whale transferred $72.5 million worth of Dogecoin from an unknown address to a Coinbase wallet through this transaction. Remittances flowing in this direction are known as exchange flows.
Two other trades were exchange flows, one to Binance ($14.6 million) and the other to Robinhood ($14.2 million). Thus, whales transferred a total of $101.3 million to the exchanges.
Generally, investors transfer coins into the custody of these central entities whenever they want to use one of the services they provide, which can include selling.
The remaining two exchange transactions were of the opposite type; They were external exchange flows. In one, Robinhood saw a $30.1 million withdrawal, while in the other, Binance issued $56.4 million worth of Dogecoin.
Coin holders place their coins into self-custody when they plan to hold them long-term so that exchange outflows can be bullish relative to the price. DOGE whales deposited $101.3 million into exchanges in the past day, which may be bearish, but they also took in $86.5 million worth of coins at one time.
Therefore, the downside impact on Dogecoin resulting from the sell-off, if any, may be at least partially mitigated by exchange outflows.
Doji price
As of writing, Dogecoin is trading at around $0.29, up over 21% in the past 24 hours.
Looks like the price of the asset has rocketed up over the last couple of days | Source: DOGEUSDT on TradingView
Featured image from Dall-E and whale-alert.io and chart from TradingView.com