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The Dogecoin price has been put in a perilous position once more after a DOGE whale made a massive transaction to an exchange. The transaction which was flagged by a DOGE community member has raised eyebrows in the space and could possibly be putting sell pressure on the altcoin.
On Tuesday, a single transaction carrying over $7 million worth of DOGE was noticed by a Dogecoin community member who posted the transaction on X (formerly Twitter). This transaction caught the attention of the community because it was carrying a little over 85 million DOGE.
At the time of the transaction, this tranche of coins was worth approximately $7.57 million, making it a large whale transaction. The destination of the transaction was even more concerning given that the coins were being sent to the Robinhood platform.
Now, the reason that this transaction is important is the fact that crypto holders will usually send their coins to centralized exchanges such as Robinhood to sell their coins. This is because they can take advantage of the cheap fees, as well as the deep liquidity provided by these platforms, to enable them to sell such large transactions with ease.
Furthermore, the X user noted an interesting thing about the sender’s address after the transaction. The whale no longer holds any Dogecoin on their account balance, which means they have sent all their coins to the exchange. This could signal that the whale is looking to completely exit their position as Dogecoin fails to launch.
DOGE price at $0.09 | Source: DOGEUSD on Tradingview.com
The DOGE price could be seeing some negative headwinds ahead especially if this whale is really selling their coins. With sell pressure already pushing down the price, selling such a large amount of Dogecoin would no doubt trigger a further decline.
This sell pressure is already evident in the meme coin’s price which has fallen drastically over the past week. In the last day alone, DOGE’s price is down 3.28%, deviating from the Bitcoin trend that has seen the pioneer cryptocurrency recover from yesterday’s lows.
However, there could be a change in this sell pressure soon as bids for the meme coin start to ramp up. According to data from IntoTheBlock, bids are starting to overtake asks again, meaning that buyers are coming back to the market. If this continues, then Dogecoin could look to reclaim $0.1 once again.
At the time of writing, Dogecoin is trading at $0.08994, with a 2.37% decline on the weekly chart. Its market cap is sitting at $12.79 billion, making it the 10th-largest cryptocurrency in the space behind Avalanche (AVAX).