108M DOGE Dump On Robinhood Sends DOGE Price Plummeting

Dogecoin custodians left on edge after massive sell-off to Robinhood creates extra price recovery hurdles.

A small kid poking Dogecoin dog with a stick in a desert.
Created by Gabor Kovacs from DailyCoin
  • Large Dogecoin holder deposits $11.58 million DOGE to Robinhood.
  • The influx sets off a wave of profit taking visible on Spot markets.
  • Pro analyst marks resistance levels for DOGE’s rebound attempt.

The general crypto markets faced turmoil last week, and Dogecoin (DOGE) was no exception. DOGE’s seven-day deficit was 12.6%, the biggest loss by percentage among all TOP 10 contenders by global market cap.

Top Causes of Dogecoin’s Double-Digit Slump

At 0.94, DOGE demonstrates an ultra-high price correlation with Bitcoin (BTC). DOGE went through rapid downturns around the same time as BTC. This was mainly caused by the German government selling off its BTC treasury, and the bearish sentiment soon transitioned to most of the altcoin market.

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Complemented by major players cashing out, this setup is unfavorable for Dogecoin’s immediate recovery above $0.109, where the next resistance bubble holds 33.38B tokens across 396.14K crypto addresses. Currently, DOGE resides in the support cluster between $0.101 to $0.109 with slimmer liquidity at 13.99B, according to IntoTheBlock.

Meanwhile, a trader who qualifies as a cryptocurrency whale deposited a whopping 108,572,027 DOGE tokens to Robinhood. The popular American retail crypto platform received an injection of DOGE, valued at $11,580,883. Upon further investigation by DailyCoin, it was established that the whale still holds 4,076,071 DOGE, valued at $440,297.28, according to BlockChair’s blockchain data explorer.

Key DOGE Resistance Levels to Watch

Daily crypto technical analysis suggests that Dogecoin is trading in a psychologically sensitive price range that’s likely to determine its trajectory for the coming weeks. According to Crypto Daily Trade Signals, Dogecoin’s daily close should be between the price range of $0.108 and $0.115 to increase the chances of a price trend reversal.

However, the bullish potential here is severely challenged by slumping trading volumes on both Spot and Derivatives markets. To illustrate, Dogecoin’s Derivatives slouched by 34% in the latest 24-hour period, bringing the total volume to just above $1 billion.

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Trading slightly above the short-term bearish trendline marked by Crypto Daily Trade Signals, DOGE is poised to retest the support-turned-resistance barrier depicted in purple. The green-line bounded territory between $0.14 and $0.15 would bump DOGE back to mid-June 2024 levels.

Dogecoin’s popularity on Spot markets is lower, according to CoinPaprika. It recorded a 24-hour volume of $727,749,329 across Spot trades and executed 24-hour sales outsourced bids by $1.57 million.

As of press time, DOGE is changing hands at $0.1081, facing a slight deficit of 0.7% over the previous 24 hours.

On the Flipside

  • In spite of the latest double-digit price drop, 73% of DOGE custodians are making a profit at this price range.
  • Derivatives markets have shown a negative Open Interest-weighted funding rate, hinting at full bear control.

Why This Matters

Dogecoin is the top meme coin asset by market capitalization and the second largest blockchain employing a Proof of Work (PoW) consensus aside from Bitcoin.

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This article is for information purposes only and should not be considered trading or investment advice. Nothing herein shall be construed as financial, legal, or tax advice. Trading forex, cryptocurrencies, and CFDs pose a considerable risk of loss.

Author
Tadas Klimasevskis

Tadas Klimaševskis is a Lithuanian journalist at DailyCoin, specializing in covering the lighter side of the crypto industry such as memecoins and pop culture in the metaverse. He has experience as a music artist, English language teacher, and freelance writer, and uses his creative writing skills to summarize valuable information in his work. He is also a strong believer in the potential of blockchain and spends his free time listening to music, traveling, and watching basketball games.