A Dogecoin whale offloaded 200 million DOGE tokens amid the price rally today while a significant surge in institutional activity was noted for the meme coin.
As the Dogecoin (DOGE) price recovered and rallied over 7%, a whale offloaded 200 million DOGE tokens. Moreover, a surge in Dogecoin’s whale activity was noted. While the buying pressure from whale accumulation could propel the DOGE price higher, the latest transaction suggests otherwise.
Whale Offloads Massive DOGE Reserve
According to Whale Alert, the Dogecoin whale in question recently transferred 200 million DOGE, equivalent to approximately $30.86 million. The transaction was executed from an unknown wallet to the popular trading platform Robinhood. This transaction has raised concerns within the crypto community, suggesting a potential dump that could halt the recent price rally of Dogecoin.
Dogecoin has experienced a notable price increase of over 7% in the last 24 hours, largely fueled by renewed buying power in the market. However, the substantial transfer to Robinhood indicates that a large holder, signals they may be preparing to sell a significant portion of their holdings. This action could introduce selling pressure and reverse the current upward momentum.
Meanwhile, data from IntoTheBlock provides additional insights into the activity of large Dogecoin holders. Over the past month, there has been a marked increase in the number of large transactions. The number of transactions peaked at 1.86K transactions on Wednesday, May 14, 2024. Moreover, this surge in activity highlights the heightened involvement of whales and institutional investors.
Furthermore, the volume of these large transactions also spiked, reaching 11.55 billion DOGE on the same day. It suggests substantial movements of tokens and likely strategic positioning by whales. While several Dogecoin whale transactions could have accounted for accumulation, the latest one hints at a potential selloff by whales who want to realize profits amid the recent surge.
Will Dogecoin Price Rally Come To An End?
Dogecoin managed to surge beyond $0.15 and even neared the $0.16 milestone. At the time of writing, the DOGE price soared 6.10% to $0.1556 on Thursday, May 16. Furthermore, the largest meme crypto’s market valuation spiked to $22.46 billion. Moreover, DOGE’s 24-hour trading volume shot up by 18.33% to $1.96 billion.
In addition, the Dogecoin futures open interest climbed 11.83% to $884.94 billion, indicating renewed interest among derivatives traders. However, short sellers dominated liquidations with $2.51 million, according to Coinglass. While the short squeeze could send DOGE’s value higher, the dump would be even more significant when shorts take charge.
Analyzing the technical indicators, Dogecoin’s price dynamics are at a critical juncture. The 50-day Exponential Moving Average (EMA), currently around $0.1652, is acting as a resistance level. A breakout above this level could signal the onset of a bullish market. Moreover, it could potentially drive the DOGE price higher to the next resistance points at $0.18 and $0.20.
On the other hand, the 100-day EMA, positioned at $0.1434, is providing a level of support, indicating a cushion against significant declines. The 200-day EMA, at $0.1237, serves as a major long-term support level. If the increased activity from whales results in substantial selling pressure, Dogecoin might face a bearish scenario, testing these support levels.