Dogecoin Drops Deeper As Whales Make Massive Moves

Dogecoin has extended its decline today as on-chain data shows the whales have been actively making large moves in the past day.

Dogecoin Whales Have Made Several Large Movements In The Last 24 Hours

According to data from the cryptocurrency transaction tracker service Whale Alert, many massive transactions have occurred on the Dogecoin blockchain during the past day.

There were 13 large DOGE transactions in the past 24 hours, which can all be organized into two batches. The first batch saw six transfers on the network worth 3,758,651,596 DOGE ($227.7 million at the current exchange rate).

These transactions have been put into the same batch because they all occurred close to each other, with some even taking place simultaneously.

Based on this coincidence, one may suspect that the same whale or the same group of whales may have been behind the transfer. The blockchain data would seemingly confirm this, as these transfers involved the same sending and receiving addresses.

Below are the full details regarding one of the transactions from this first batch:

Looks like this massive transfer only took a meager fee of 2 DOGE to go through | Source: Whale Alert

As you can see above, both the sender and the receiver in the case of these Dogecoin transactions were unknown addresses, meaning that they were wallets unaffiliated with any known centralized platform, like an exchange. Such addresses are usually the investors’ addresses.

Since transactions between two unknown addresses don’t have any special features, it’s generally hard to say why they may have occurred. Involvement of centralized platforms can sometimes be a hint, as, for example, deposits to exchanges can be a sign of selling since investors use these platforms for such a purpose.

But in the current case, there can be various reasons behind these transactions, ranging from changing wallets to selling through over-the-counter deals.

Interestingly, the second batch of Dogecoin whale transactions from the past day also involved only movements between unknown wallets, as the details for the first transfer from this batch are highlighted.

This transaction also only needed a negligible fee of 4.5 DOGE to be possible | Source: Whale Alert

In total, there were seven transfers in this batch, all of them once again taking place close to each other, and this time, not only were their sending and receiving addresses the same, but also their sending amounts were the same as well: 800,000,000 DOGE for each of them.

Thus, 5,600,000,000 DOGE ($340 million) moved across the blockchain with these transfers. On a closer look, a curious similarity between the two batches appears: the sending address of the second batch and the receiving address for the first batch are both the same entities.

This would suggest that the whale entity who received the coins from the whale in the first transactions made some large movements themselves only a few hours later.

As for the purpose behind these transfers, it’s again hard to say, at least in isolation. However, when combined with the price trend seen in the past day, it may appear that selling could have been the goal, as the Dogecoin price has taken a hit.

This potential whale selling occurred as the Fed announced its interest rate decision, seemingly shaking up not just DOGE but the entire cryptocurrency sector.

DOGE Price

When writing, Dogecoin is trading around $0.06, down 10% in the last week.

DOGE continues to slip down | Source: DOGEUSD on TradingView

Featured image from Mike Doherty on Unsplash.com, chart from TradingView.com