Last Updated on April 24, 2023 by Bitfinsider
According to data, a Dogecoin whale recently withdrew $12 million in DOGE from Binance, which may be optimistic for the asset’s price.
A sizable transfer took place on the Dogecoin blockchain yesterday, according to information from the cryptocurrency transaction tracker service Whale Alert. Around 151,605,154 DOGE were transferred in this transaction, which was valued almost $12.1 million at the time it was completed.
Given the sheer volume of tokens involved in this movement, a whale entity was probably responsible. Because of the vast scale of their holdings, whales play a significant role in the DOGE ecosystem. Their transactions are typically something to keep an eye out for because the volume of coins engaged in them might occasionally have an impact on the market.
The most recent Dogecoin whale transfer may also have an impact on the market, but understanding the motivation behind the transaction is necessary to determine just how.
Here are some additional details about the significant move from yesterday that could provide further context:
There were further outputs, but they were flowing back into Binance-attached wallets. The sending addresses involved in this transaction were those linked to the cryptocurrency Binance, whereas the receiver was an unidentified wallet.
The phrase “unknown wallet” in this context means that this address was unconnected to any recognized centralized platform (such as an exchange). This indicates that the address in question was probably an investor’s off-site personal wallet.
These transfers of currency from centralized exchanges to individual wallets of holders are referred to as “exchange outflows.” In order to keep their coins for a long time, investors typically transfer them from these sites into their personal wallets. Exchange outflows can boost the price of the coin because of this.
The fact that there was only one significant outflow in the most recent instance after a strong decline in the price of DOGE may indicate that the whale is stockpiling at the current, relatively low price levels.
This naturally indicates that this enormous holder views the current prices as only a discount rather than the beginning of a significant downturn, which is good news for the market.
But only if the outflow was truly planned with accumulation in mind would this be the case. There is always the chance that this investor just removed this sizable stack in order to sell it through peer-to-peer (P2P) transactions. Obviously, under this scenario, Dogecoin’s price would continue to move downward.
At the time of writing, Dogecoin is selling at about $0.079, down 16% over the past week.
How to buy or trade DOGE on ProEX
You can buy or trade DOGE on ProEX. As ProEX frequently holds campaigns and events, you should check out its event page here to see if you can participate and win rewards as you trade.
On ProEX, you can trade DOGE as a spot pair (DOGE/USDT) in 3 simple steps:
- Sign up and register an account on ProEX
- Buy USDT via ProEX One-click Buy
- Trade DOGE/USDT at ProEX Spot
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Disclaimer: The views and opinions expressed by the author, or any people mentioned in this article, are for informational purposes only, and they do not constitute financial, investment, legal, tax or other advice. Investing in or trading cryptocurrency or stocks comes with a risk of financial loss.
