1.3B DOGE Moved: Are Dogecoin Whales Signaling a Bigger Crash Ahead?
- Dogecoin whales sold approximately 1.32 billion DOGE on April 7 and 8, causing a major shift in market sentiment.
- This large-scale dump coincided with a sharp 22 percent price drop from $0.168 to $0.131.
- On-chain analyst Ali Martinez confirmed that each selling wallet held at least one billion DOGE before the selloff.
This week, a sudden drop in large-scale Dogecoin (DOGE) holdings has drawn attention across the cryptocurrency market. On April 7 and 8, Dogecoin whales unloaded 1.32 billion DOGE, drastically reducing their positions. The token market lost 22% of its value while this movement occurred with a decrease from $0.168 to $0.131.
According to on-chain analytics shared by Ali Martinez, each wallet involved held at least one billion DOGE. The significant transfer activity began shortly after Dogecoin started sliding from its March 25 local peak of $0.206. Retracing its value upward after the initial decline, Dogecoin maintains a current price of $0.147.
The transaction time reveals that whales actively participated in the declining market, making strategic prepaid transactions that increased the price fall. The on-chain data platform Santiment observed the transactions, verifying the scale of the whale movements. Martinez communicated the significance of the trend for his followers on X through a supporting chart he posted after doing so.
DOGE Price Impact Mirrors Wider Market Turbulence
The decreasing DOGE holdings happened when crypto market fluctuations were getting more volatile. The value of Bitcoin began to decline because U.S. tariffs created market instability among investors. Dogecoin joined multiple other primary assets, and its prices decreased because of this market event.
Additional customer sell-offs occurred as Dogecoin experienced a price decline, further accelerating the market descent. A series of negative market changes emerged when Dogecoin investors witnessed its March peak price dip of 28% because of unstable market factors. A significant transaction of 300 million DOGE was tracked departing for Binance.
A large wallet transaction monitoring system named Whale Alert detected a probable sale when tracing an unknown account. The movement of whales substantial funds to trading platforms indicates probable selling behavior because it affects market values. The data collected by Santiment demonstrates that premium holders have the potential to conduct more selling operations.
DOGE Profitability Remains Moderate Compared to Peers
Despite the recent selloff, Dogecoin maintains a modest profitability rate among cryptocurrencies. As reported by Glassnode, 50.8% of the DOGE supply remains in profit year-to-date. More than half of the Dogecoin supply currently exceeds its initial purchase prices.
Dogecoin is behind Bitcoin, Toncoin, and XRP in terms of profit generation among assets. Bitcoin generates profits at a rate of 76.8%, but XRP reaches 81.6%, and TRX operates at 84.6% profit levels. Solana reported 44.9% profitability, while Ethereum displayed a 31.6% profit rate, indicating that Dogecoin exists between these two figures in terms of profitability.
Source: X
The profitability rate demonstrates that Dogecoin has proved resilient, yet large whale transactions in the market signal negative consequences for short-term value stability. Significant investor reduction activities might lead to further price drops in this market. Dogecoin will experience prolonged market fluctuations because buy and sell activities coincide with cryptocurrency exchange transactions.
Read more: https://www.tronweekly.com/1-3b-doge-moved-are-dogecoin-whales/
Text source: TronWeekly
