On-chain data shows that a Dogecoin whale has just transferred a large amount of DOGE to Coinbase, which could be bearish for the price.
Dogecoin Whale achieved significant exchange inflow today
According to data from the cryptocurrency transaction tracking service Whale alertTwo major transactions occurred on the DOGE network over the past day.
Both of these transfers are on a scale generally attributed to cetacean entities. Whales are investors who hold huge amounts of assets in their addresses and, therefore, have a remarkable degree of influence in the market.
Given their main position on the network, the movements of these massive investors can be worth following, because even if they do not directly affect the value of the memecoin, they can still tell us about the sentiment among these giants.
However, it is often difficult to say anything about what the whale intends to do with the transaction, given the anonymous nature of blockchain technology. However, sometimes a wallet is connected to a central exchange, and in those cases, there is already room for speculation.
One of the large Dogecoin transactions in the last 24 hours is of this type. Below are the details of the transfer in question.
This DOGE transfer appears to have needed a fee of just $4.3 to go through | Source: Whale Alert
As shown above, the sending address for this Dogecoin transaction was an unknown wallet, meaning it was likely the investor’s personal address, but the recipient was connected to a known entity: the Coinbase exchange.
In total, the whale transferred 197,606,395 DOGE to the platform through this transfer. At the time of the transaction, the value of this stack was approximately $84.6 million.
Movements of this type, where coins flow from a self-custodial address to a wallet linked to an exchange, are known as exchange flows. As one of the main reasons why investors deposit into these platforms for selling purposes, exchange flows can have a downward impact on the price of the asset.
While the amount involved in this Coinbase whale flow is notable, it alone may not be enough to move the asset. However, the filing could still be bad news, as it could indicate that whales are looking to exit now that the memecoin operation has gone cold.
Another Dogecoin whale transaction from today included the transfer of 130 million DOGE ($56.2 million), but this transfer occurred between two unknown wallets, so it is not possible to guess what the purpose might have been behind it.
It could be a sign of a sale through an over-the-counter (OTC) transaction or it could be as simple as the owner moving their funds to a new address.
Doji price
At the time of writing, Dogecoin is trading at around $0.42, up 16% over the past week.
Looks like the price of the coin has gone stale during the last few days | Source: DOGEUSDT on TradingView
Featured image from Dall-E and whale-alert.io and chart from TradingView.com
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