Dogecoin Whale Dumps 86M DOGE But Technical Traders Say There Is Reason To Be Optimistic
Dogecoin’s monthly gains have been slashed to 90% amid the market sell-off and a whale offloading 86 million DOGE.
What Happened: Whale Alert data revealed that an unknown wallet address transferring 86 million DOGE, worth $14.1 million, to a Robinhood address, followed by another 4 million DOGE to another unidentified wallet.
The same wallet, known for large transfers, still holds an additional 4 million DOGE.
This transaction has sparked speculation within the crypto community about whether this sell-off reflects broader market movements or is a strategic move by a single trader.
According to Coinglass data, Dogecoin’s open interest dropped by 16.7% to $1.2 billion and its trading volume decreased by 20.3%.
Additionally, liquidations reached their highest point on March 5, currently standing at $10 million.
Also Read: Why Can't Dogecoin And Shiba Inu Keep Up With Other Meme Coins?
Why It Matters: Data from BitInfoCharts indicates a consistent increase in the number of Dogecoin holders, underscoring the confidence of large holders in the meme coin.
IntoTheBlock data highlights an increase of 92.8% in large transactions to $5.29 billion.
In contrast, other meme coins like Shiba Inu (-5.4%) experienced drops in this metric. The number of daily active addresses also saw a significant increase of 13.5%, reaching 199,190. Moreover, approximately 86% of DOGE holders are currently in a profit position.
In response to the market drop, a technical crypto trader known as Cryptollica expressed optimism for Dogecoin's future trajectory.
Cryptollica�@CryptollicaMar 15, 2024So it begins...There is no turning back !
Doge cycle chart with bbw 💥#doge pic.twitter.com/nDyfKmHa0q
Despite the recent decline, the ongoing speculation around Tesla potentially accepting Dogecoin payments in the future has kept the community optimistic about the coin's performance.
Analysts continue to hold a bullish outlook on Dogecoin.
Read Next: Dogecoin Up 115% In A Month And 'Could Hit $1 By Mid-April,' Says Crypto Analyst Ali Martinez
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