Dogecoin has has been falling in price over the past seven days, while the entire crypto market continues to be overcome by a feeling of fear. Additionally, the meme cryptocurrency recently met with rejection due to fresh bearish pressure. This came as the cryptocurrency attempted to recover some of the losses suffered last week.
According to several social media posts from whale transaction tracker Whale Alerts, there have been several instances of large Dogecoin transfers into and out of exchanges during this price decline, with the latter being prevalent and contributing to the decline. Notable among these transfers is the transfer of 108.5 million DOGE tokens to Robinhood.
DOGE Price in Trouble
Blockchain transaction details show that the 109 million DOGE tokens were transferred from a private address “DF8jRK” to “DHQsfy,” an address linked to American retail crypto platform Robinhood.
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At the time of the transfer, the tokens were collectively worth $11.58 million, making it one of the largest Dogecoin transactions in 30 days. Consequently, the transfer to Robinhood, a major cryptocurrency exchange, suggests that whales may be preparing to sell their DOGE holdings, which could send the price down.
🚨 108,572,027 #DOGE (11,580,883 USD) transferred from unknown wallet to #Robinhoodhttps://t.co/rKRBitf8Qy
– Whale Alert (@whale_alert) July 8, 2024
Generally speaking, whale transfers to cryptocurrency exchanges like this contribute to bearish sentiment among retail investors. Interestingly, a closer look at the data on the blockchain reveals that this is not the first time the unnamed whale address has transferred large amounts of Dogecoin tokens to Robinhood in what appears to be sales. As reported by NewsBTCA similar transaction occurred in October 2023, when 71.2 million DOGE tokens were dumped on Robinhood by the address “DF8jRK.”
What’s next for Dogecoin?
This latest Robinhood sell-off is just the latest setback for the popular meme cryptocurrency, which has been going through a challenging phase.
In the last month alone, DOGE has lost around 25% of its value, reaching the bottom below $0.10 for the first time since February. Consequently, the meme cryptocurrency lost a considerable portion of the gains accumulated during the first half of the year, when it peaked at $0.22.
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At the time of writing, DOGE was trading at $0.108 and was still actively selling off in the broader cryptocurrency market. According to average cost data According to IntoTheBlock, Dogecoin bulls would need to cut through many resistance points around $0.109, $0.113, $0.117, and $0.1209 before regaining full bullish momentum from retail investors. This requirement for bullish momentum was also reaffirmed by Crypto Daily Trade Signals, which pointed out that the price of DOGE must stabilize above $0.1080 and $0.1150 to be considered bullish.
Featured image created with Dall.E, chart from Tradingview.com