Dogecoin Whale Makes $84M Coinbase Deposit, Bearish Sign?

On-chain data shows a Dogecoin whale has just transferred a large amount of DOGE to Coinbase, something that could be bearish for the price.

Dogecoin Whale Has Made A Large Exchange Inflow Today

According to data from the cryptocurrency transaction tracker service Whale Alert, a couple of large transactions have occurred on the DOGE network during the past day.

Both of these transfers are of a scale that’s generally attributed to the whale entities. The whales are the investors who hold massive amounts of the asset in their addresses and as such, carry a notable degree of influence in the market.

Because of their key position on the network, the moves of these humongous investors can be worth following, for even if they may not directly influence the memecoin’s value, they can still tell us about the sentiment among these titans.

A lot of the time, though, it’s hard to say anything about exactly what a whale intended to do with a transaction, given the anonymous nature of the blockchain. That said, sometimes one of the wallets is connected with a centralized platform and in those cases, there is indeed room for speculation to be done.

One of the large Dogecoin transactions from the last 24 hours is of this type. Below are the details for the transfer in question.

This DOGE transfer appears to have needed a fee of just $4.3 to go through | Source: Whale Alert

As is visible above, the sending address for this Dogecoin transaction was an unknown wallet, meaning that it was likely the investor’s personal address, but the receiver is connected to a known entity: the Coinbase exchange.

In total, the whale has moved 197,606,395 DOGE to the platform with this transfer. At the time that the transaction was executed, this stack was worth almost $84.6 million.

Moves of this type, where coins flow from a self-custodial address to an exchange-associated wallet, are known as exchange inflows. As one of the main reasons why investors deposit to these platforms is for selling-related purposes, exchange inflows can carry a bearish implication for the asset’s price.

While the amount involved in this whale Coinbase inflow is notable, it alone may not be enough to move the asset. The deposit can still be bad news, however, as it may signal that the whales are looking to exit now that the memecoin’s run has gone cold.

The other Dogecoin whale transaction from today involved a transfer of 130 million DOGE ($56.2 million), but this move took place between two unknown wallets, so it’s not possible to guess what purpose it might have had.

It could be a sign of selling through an over-the-counter (OTC) deal or it could be as simple as the holder moving their funds to a fresh address.

DOGE Price

At the time of writing, Dogecoin is trading around $0.42, up 16% over the last week.

Looks like the price of the coin has gone stale during the last few days | Source: DOGEUSDT on TradingView

Featured image from Dall-E, whale-alert.io, chart from TradingView.com