On-chain data shows that a Dogecoin whale just moved a large amount of DOGE to Coinbase, which could be bearish for the price.
Dogecoin Whale made a large influx of trades today
According to data from cryptocurrency transaction tracking service Whale alerta few large transactions took place on the DOGE network over the past day.
These two transfers are of a magnitude generally attributed to whale entities. Whales are the investors who hold massive amounts of assets at their addresses and, as such, exert notable influence over the market.
Due to their key position on the network, the movements of these huge investors may be worth following, because even if they do not directly influence the value of the memecoin, they can still tell us about the sentiment of these titans.
However, most of the time it is difficult to say anything about what a whale intended to do with a transaction, given the anonymous nature of blockchain. That said, sometimes one of the wallets is connected to a centralized platform and in these cases there is indeed room for speculation.
One of the largest Dogecoin transactions in the last 24 hours is of this type. Below are the details of the transfer in question.
This DOGE transfer appears to have needed a fee of just $4.3 to go through | Source: Whale Alert
As can be seen above, the sending address for this Dogecoin transaction was an unknown wallet, meaning it was likely the investor’s home address, but the recipient is connected to a known entity: the Coinbase exchange.
In total, the whale moved 197,606,395 DOGE to the platform with this transfer. At the time the trade was executed, this stack was worth almost $84.6 million.
Movements of this type, where coins flow from a self-custodian address to a wallet associated with the exchange, are known as foreign exchange entries. As one of the main reasons investors deposit on these platforms is for selling purposes, foreign exchange flows can have a bearish implication on the price of the asset.
While the amount involved in this Coinbase whale influx is notable, it alone may not be enough to move the asset. However, the filing may still be bad news, as it may indicate that whales are looking to exit now that the memecoin run has gone cold.
Today’s other Dogecoin whale transaction involved a transfer of 130 million DOGE ($56.2 million), but this transfer took place between two unknown wallets, so it’s not possible to guess which objective this could have had.
This could be a sign of a sale via an over-the-counter (OTC) transaction or it could be as simple as the holder transferring their funds to a new address.
DOGE Price
At the time of writing, Dogecoin is trading around $0.42, up 16% from last week.
Looks like the price of the coin has gone stale during the last few days | Source: DOGEUSDT on TradingView
Featured image of Dall-E, whale-alert.io, chart from TradingView.com