The Whale Alert blockchain tracking platform recently disclosed a substantial movement of 990 million Dogecoin (DOGE) from one wallet to another on January 16th. The transferred coins carried a value of $79.75 million. However, Whale Alert highlighted the inability to verify the public profiles of the involved parties in the transaction.
While the transaction could imply a potential sale if the coins were deposited into an exchange, it remains uncertain at present whether this move is indicative of a forthcoming sale. Interestingly, similar transactions have been observed as relatively routine within the Dogecoin ecosystem.
🚨 🚨 🚨 🚨 990,000,000 #DOGE (79,757,842 USD) transferred from unknown wallet to unknown wallet https://t.co/Jtf8HzANTK
— Whale Alert (@whale_alert) January 16, 2024
A noteworthy event occurred on January 9th when a comparable transfer of one billion DOGE from Binance to another wallet transpired. Following this transaction, DOGE experienced a surge from $0.076 to $0.085. Nevertheless, between that period and the current moment, the price of DOGE witnessed a decline, settling at $0.082.
DOGE’s Bearish Outlook: Anticipating a Decline
Examining the trading volume, on-chain data reveals a significant drop to $296.74 million, marking a substantial decrease from the peak of $1 billion recorded on January 12th. This decline suggests a reduction in participant activity regarding the buying and selling of Dogecoin.
Additional metrics considered by AZC News include Dogecoin circulation and Open Interest per exchange, providing a comprehensive overview of the current dynamics within the Dogecoin market.
Related: Elon Musk Revealed That He Still Holds Dogecoin
The circulation metric reflects the number of coins involved in transactions over a specific period. A decrease in circulation signals reduced selling pressure, while an uptick suggests heightened usage. While not a consistent rule, an increased circulation can sometimes precede a price decline. Currently, DOGE’s one-day circulation has risen to 14.48. In tandem, the Open Interest on exchanges has also surged to 111.96 million.
The concurrent rise in circulation and Open Interest hints at a potential decrease in DOGE. This is corroborated by the Accumulation/Distribution (A/D) indicator, which, according to the 4-hour chart, has plateaued at 27.14 billion. This suggests a pause in both distribution and accumulation. In this scenario, Dogecoin may either dip below $0.08 or fluctuate within the $0.080 to $0.083 range for the time being.
Additionally, the Bollinger Bands (BB) indicate low volatility as the bands contract, reinforcing the notion that a DOGE breakout is challenging. However, a surge in buying pressure from bulls could breach the $0.083 resistance, potentially leading to a move towards $0.09. Nevertheless, this outcome may not materialize in the short term. The trajectory of DOGE’s price might align with the broader movement of altcoins; if they start an upward trend, DOGE’s value could also experience an increase.
