Over the last 48 hours, Dogecoin’s price has witnessed a significant drop, breaking below the $0.2 threshold after a bullish week of attempts to maintain above the $0.22 support level. The slide below the $0.22 support prompted a series of selloffs, pushing Dogecoin below $0.2. This price fluctuation has been underscored by a substantial on-chain move of Dogecoin to crypto exchange Coinbase, intriguing many within the crypto world.
Blockchain monitoring tool, Whale Alert, has recorded three large Dogecoin transactions, each involving 104,125,016 DOGE, worth roughly $20.09 million. These transfers originated from three distinct wallets to Coinbase, making the total transaction 312,375,048 DOGE, valued at over $60 million at the transaction time.
While the wallets are technically separate, their identical balances, timing, and synchronized movement point towards control by a single entity. On-chain records show these wallets began receiving Dogecoin in October 2021, five months post Dogecoin reaching its all-time high of $0.7316 in May 2021. Fresh inflows were added in 2022, but there has been negligible to no activity since then. In addition, these wallets have not made any outgoing transactions until this recent move, marking the first time these tokens are being moved to an exchange.
The immediate concern for investors is the potential of a large-scale selloff. The transfer of over 312 million DOGE to Coinbase could indicate a plan to liquidate, particularly if the whale controlling these wallets plans to take profits after nearly two years of dormancy. Such a sale would significantly increase selling pressure on Dogecoin, which is already facing a challenge in generating enough market demand to absorb the selling pressure.
However, large transfers to exchanges don’t always signify bearish intent. It’s plausible that these wallets are owned by Coinbase, and the transfers are merely part of internal restructuring or reallocation from cold to hot wallets, posing no threat to the price. Currently, there is no concrete evidence to confirm either scenario, and the ambiguity is sufficient to keep retail Dogecoin traders on high alert.
Interestingly, the Dogecoin price might already be responding to these movements. At the time of writing, Dogecoin was trading at $0.188, down by 0.35% and 14% over the past 24 hours and seven days, respectively.
