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Data show that Dogecoin whales travelled extensively during the day. What does that mean in terms of the price of the meme part?
The Dogecoin whales made several major trades today.
A few transactions involving an enormous amount of DOGE were spotted on the blockchain last day. As per data from the crypto transaction tracker service Whale Alert, the first of these transfers involved the movement of 450,000,000 DOGE, worth more than $40 million at the time of the transaction.
As the scale of this transfer is quite large, the sender is likely to be a whale. The transactions of these gigantic holders are usually those to be monitored, as they can sometimes cause noticeable undulations in the market. Of course, these transfers can be both up and down, depending on what the whale plans to do with the move.
Here are some additional details regarding this Dogecoin whale transfer, which may have hints about the purpose behind it:
Looks like this massive transfer only costed the sender a fee of $0.09 | Source: Whale AlertAs can be seen above, both the sending and receiving addresses for this Dogecoin whale transaction were unknown addresses. "unknown" means in this case that these addresses are not connected to a known centralized platform. So these usually belong to portfolios of personal investors.
Given that there is no platform involved here, it is difficult to say exactly why the whale carried out this transfer. The holder may have sold by means of an over-the-counter transaction, in which case the movement could have a downward impact on the price of the piece itself.
However, it is also possible that both addresses here were the property of the same whale, and that they were just restructuring their holdings between those addresses. If this scenario is true, then dogecoin should not be affected by this transaction.
Another tracker, Dogecoin whale alert, said there were also two other whale transfers today. And unlike the transaction above, these movements have relied on centralised platforms.
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352,422,225 $DOGE ($32,672,007 USD) was transferred from a #Top20 wallet to a #Binance wallet.
Fee: 2.41 ($0.22 USD)
Tx: https://t.co/9j5AiXlXF6#DogecoinWhaleAlert #WhaleAlert #Dogecoin #CryptoNews
— ?ogecoin Whale Alert (@DogeWhaleAlert) January 31, 2023
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61,918,730 $DOGE ($5,740,300 USD) was transferred from a #Top20 wallet to a #Binance wallet.
Fee: 0.844 ($0.078 USD)
Tx: https://t.co/VBVh7nqjP3#DogecoinWhaleAlert #WhaleAlert #Dogecoin #CryptoNews
— ?ogecoin Whale Alert (@DogeWhaleAlert) January 31, 2023
Based on the tweets, it is clear that these two transactions combined resulted in over $38 million in asset displacement. Blockchain information for both movements confirms that the same mailing and receiving addresses were included in both transactions, which means that only one whale was likely behind both.
The shipper was one of the 20 most important wallets in the system, suggesting that the whale was one of the 20 largest in the system. At the end of receipt of these two transfers was , an exchange of crypto-currency.
As one of the main reasons why investors use stock exchanges is for sale, transfers to these platforms can have downward consequences on the price of DOGE.
These deposits to BINANCE have come after Dogecoin has rallied around 8% in the past day, following news that Elon Musk is planning to roll out cryptocurrency payments on Twitter. If the whale really intended to sell here, then it is likely that this was done in order to take advantage of the current opportunity to take advantage.
At the time of writing, Dogecoin is trading around $0.0929, up 5% in the last week.
DOGE has shot up today | Source: DOGEUSD on TradingView
