- 2 huge concurrent transfers to Coinbase valued at $69M spark sell-off fears.
- Dogecoin is yet to reclaim the $0.20 DOGE price target since April 12, 2024.
- Judging by weekly performance, DOGE was outshined by smaller siblings.
The top dog meme coin Dogecoin (DOGE) nabs the attention of blockchain whale tracking agencies, with two simultaneous transactions of abnormally large amounts. Namely, two transactions of approximately 228M Dogecoins were done at the same time, at 3:07 AM UTC on Friday.
True Intention Behind Whale’s Coinbase Deposit
While hefty whale transactions symbolize either the intention to accumulate or distribute tokens, the nature of these DOGE transactions has rang the alarm for Dogecoin’s holders, since all of the 457 million DOGE are being poured into the circulation of Coinbase, one of the most popular centralized cryptocurrency exchanges (CEXs).
As Dogecoin battles the psychological confluent resistance barrier at $0.15, this whale has deposited 457 million DOGE on Coinbase. The original meme coin has been enduring a gradual consolidation phase since last week. Moreover, the rise in Dogecoin whale activity is further strengthened by a 1.76% hike in large transactions, according to real-time on-chain data by IntoTheBlock.
Dogecoin’s Road To $0.20 Challenged By Sell-Offs?
In the rapidly rotating whirlpool of the crypto market, large whale deposits to major exchanges typically indicate the trader’s intention to sell. However, looking at the combined liquidity books of Dogecoin in spot markets, it doesn’t appear that DOGE is facing intense selling pressure.
With 89.35 million in bids, the crypto bulls have an edge over Dogecoin bears, as the pending sales orders are piling up to $81.94 million, falling behind the bulls by nearly $8 million. In derivatives markets, DOGE short sellers have also endured a bigger deficit, with liquidated short positions topping $1 million over the past 24 hours, despite Dogecoin’s price remaining relatively stable.
Meanwhile, crypto analysts highlight the confluent resistance at $0.15 to be the make-or-break moment for Dogecoin’s price trajectory in the near future. To illustrate, crypto trader WavesOfCream insists that Dogecoin’s Relative Strength Index (RSI) is favorable for the resistance to be broken.
Upon further analysis by DailyCoin, the RSI scales on the 1-day charts are pointing to 33.52, which constitutes an oversold condition. According to the graphic shared by WavesOfCream, a weekly close above $0.16343 would increase Dogecoin’s chances of breaking out above $0.20.
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However, it bears mentioning that Dogecoin’s yearly peak at $0.22 on April Fool’s Day 2024 witnessed a swift market correction to $0.173 in five days. DOGE has since been unable to reclaim the price milestone in the following two attempts in April 2024. As of press time, the #9 DOGE is changing hands at $0.15, according to CoinGecko.
On the Flipside
- In recent weeks, the top dog Dogecoin (DOGE) has been outperformed by all of the smaller siblings in the top 100 cryptos by global market capitalization.
- For instance, Bonk (BONK) embarked on an 85% weekly bull run, while DOGE’s direct competitor Shiba Inu (SHIB) inked 12% gains during the same timeframe.
Why This Matters
Dogecoin is a long-term top 10 contender by market cap and the second largest Proof of Work (PoW) chain, uniting crypto enthusiasts in a large community, known as DOGE Army.
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