Dogecoin Whale Dumps $200M Tokens On Robinhood, DOGE Price Rally To Stop?

As the Dogecoin (DOGE) price recovered and rose more than 7%, a whale unloaded 200 million DOGE tokens. Additionally, a surge in Dogecoin’s whaling activity has been noted. While the buying pressure from whale accumulation may push the DOGE price higher, the latest transaction suggests otherwise.

Whale unloads 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 in the crypto community, suggesting a possible dump that could halt Dogecoin’s recent price rally.

Dogecoin has experienced a notable price increase of over 7% in the past 24 hours, largely fueled by renewed buying power in the market. However, the significant transfer to Robinhood suggests that a major holder is indicating that they may be preparing to sell a significant portion of their holdings. This action could cause selling pressure and reverse the current upward momentum.

Meanwhile, data from IntoTheBlock provides additional insights into the activity of major Dogecoin holders. In the past month, there has been a noticeable increase in the number of large transactions. The number of transactions reached a peak of 1.86,000 transactions on Wednesday, May 14, 2024. Moreover, this surge in activity highlights the increased involvement of whales and institutional investors.

Furthermore, the volume of these large transactions also increased, reaching 11.55 billion DOGE on the same day. This indicates significant movements of signs and likely strategic positioning by whales. While several Dogecoin whale transactions could be responsible for accumulation, the latest one points to a potential sell-off by whales looking to realize profits amid the recent surge.

Also Read: 10-Year-Old Dogecoin Stack Dump Leaves DOGE Investor With Millions Of Dollars Loss

Will Dogecoin price rally come to an end?

Dogecoin managed to rise above $0.15 and even reached the $0.16 milestone. At the time of writing, DOGE price was up 6.10% to $0.1556 on Thursday, May 16th. Furthermore, the largest meme crypto’s market valuation rose to $22.46 billion. Additionally, DOGE’s 24-hour trading volume rose 18.33% to $1.96 billion.

In addition, 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 push could send DOGE’s value higher, the dump will be even more significant when shorts take control.

Analyzing the technical indicators, Dogecoin’s price dynamics is at a critical juncture. The 50-day exponential moving average (EMA), currently around $0.1652, serves as a resistance level. A break above this level could signal the start of a bullish market. Moreover, this could possibly drive the DOGE price higher towards the next resistance points at $0.18 and $0.20.

On the other hand, the 100-day EMA, positioned at $0.1434, provides 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 of whales results in significant selling pressure, Dogecoin could face a bearish scenario, testing these support levels.

Also Read: DOGE Price Prediction: How Growth in Market Interest Could Drive Dogecoin to $0.5

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