Data shows that Dogecoin whales have deposited more than $5 million in crypto to Coinbase. Here’s what this could mean for DOGE’s price.
Dogecoin Wheel sends 57 million DOGE to crypto exchange Coinbase
According to data from the Crypto Transaction Tracker service Wheel alert, a massive Dogecoin transaction took place on the blockchain today. In total, the transfer involved the movement of 57,056,400 DOGE, worth more than $5 million when the transaction was sent.
Since the money here is so large, the entity behind the transfer is likely to be. The wheel, or at least a group consisting of several large investors. Due to the sheer volume of tokens involved in such transactions, they can sometimes cause significant ripples in the asset’s price.
But the potential change in the value of a crypto from such a movement of coins depends on several factors, the main one being the actual motive behind the transaction.
Here are some details on Dogecoin Wheel’s latest transaction, which may shed some light on why the investor decided to make this move:
Looks like the holder only had to pay a small fee of $0.21 for this massive transfer to be possible | Source: Whale Alert
As can be seen above, the sending address for this Dogecoin transaction was an anonymous address, which is a type of address that is not connected to any known central platform, and thus is likely a private wallet. . In this case the recipient was an address associated with a crypto exchange. Coin base.
Note that the transaction details show that there is another payee for this transaction, with a total transfer amount of approximately $10.5 million. But upon closer inspection, it’s clear that it’s just the sender’s address, meaning that the output is only showing the amount still left in the original wallet (ie a little over $5.3 million, as that $5.1 million went to Coinbase).
Such a transaction where coins are transferred from a personal wallet to an exchange is called an exchange inflow. Investors typically deposit into exchanges for selling purposes, so inflows can have bearish effects on the price of MemCoin.
If this Dogecoin whale has indeed made this transfer with the intention of selling on Coinbase, DOGE may experience a negative impact. Data from WhaleStats, however, shows that crypto is among the top 10 most-bought tokens. BNB Smart Chain (BSC) wheel Just yesterday
on the bus: $DOGE @dogecoin Now in the top 10 bought 100 major tokens #BSC Wheel in the last 24 hours 🐳
Check out the top 100 wheels here: https://t.co/0SYnjw0xQs
(And hodl $BBW (to see data for the top 4000!)#DOGE #WheelStatus #Baby Whale #BBW pic.twitter.com/G6RCR4INnt
— WhaleStats – Top 1000 BSC Rich List (@WhaleStatsBSC) January 23, 2023
Such accumulations by bulls can generally be bullish in value, so depending on the scale of these purchases, they could offset any potential selling pressure caused by today’s bulls. In such a situation, Dogecoin will likely not feel any impact from the exchange influx.
At the time of writing, Dogecoin is trading around $0.0889, up 5% in the past week.
The value of the crypto seems to have climbed up in recent days | Source: DOGEUSD on TradingView
Featured image by Richard Sagredo on Unsplash.com, chart from TradingView.com
#Dogecoin #Wheel #Moves #DOGE #Coinbase #Bearish #Signal