Data shows a Dogecoin whale has moved $21.7 million worth of DOGE to Binance, something that can be bearish for DOGE’s price.
Dogecoin Whale Has Transferred More Than $21 Million To Binance
According to data from the cryptocurrency transaction tracker service Whale Alert, a massive transfer has been spotted on the Dogecoin blockchain during the past day. The sending entity of this transaction was likely a whale since the amount involved here is so large.
Movements from these humongous holders can generally be something to look out for, as the huge amount of capital involved in them may cause noticeable effects on the market.
Below are the complete details related to today’s Dogecoin whale transfer, which may help shed some light on what the investor may have intended to accomplish with the move.
Looks like this massive movement only cost the sender a minute fee of 0.00328353 DOGE | Source: Whale Alert
As you can see above, the sending address in the case of this Dogecoin transfer was an unknown address, meaning that it was unattached to any known centralized platform (like an exchange).
Before the transaction happened, this sender was holding an extreme balance of 1,981,615,531 DOGE (worth around $143.5 million at the time the transfer was executed), implying that the whale was one of the largest on the network. In this transaction, however, it seems that the whale has emptied their wallet.
There were also two destinations for these coins: an address attached to the cryptocurrency exchange Binance and another unknown wallet. The bulk of the transfer looks to have gone towards the latter (1,681,615,531 DOGE or $121.7 million).
Generally, one of the most common reasons why an investor would transfer their coins from a self-custodial wallet to an exchange is for selling-related purposes.
Since 299,999,999 DOGE (about $21.7 million) from this latest transfer has been deposited into an exchange (Binance), it’s possible that the whale may have wanted to sell this amount. Naturally, such selling can have short-term bearish implications for the price of the meme coin.
As for the transaction towards the unknown wallet, it’s hard to say why it may have been done. The amount involved in this particular part of the transaction covered the majority of the coins (as mentioned before), so it’s possible that this new unknown wallet is also owned by the same whale and the holder only intended to achieve a fresh change of wallets with the move.
If this is the case, then at least this part of the transaction shouldn’t be bearish for the price. However, another possibility is that this transfer was evidence of a sale done through an over-the-counter (OTC) deal. In such a scenario, DOGE could definitely feel a negative impact from the whale’s move.
At the time of writing, Dogecoin is trading around $0.0736, down 6% in the last week.
DOGE seems to have taken a sharp plunge over the last couple of days | Source: DOGEUSD on TradingView
Featured image from iStock.com, chart from TradingView.com