Dogecoin has was experiencing a price drop of the past seven days, as the entire crypto market continues to be dominated by a fear sentiment. Furthermore, the meme cryptocurrency has recently emerged encountered rejection due to new bearish pressure. This happened as the cryptocurrency attempted to recover some of the losses it suffered last week.
According to several social media posts from whale transaction tracker Whale Alerts, there have been multiple instances of large Dogecoin transfers in and out of exchanges during this price drop, with the latter being predominant and contributing to the drop. Notable among these transfers is the transfer of 108.5 million DOGE tokens to Robinhood
DOGE Price in trouble
Transaction data from the blockchain shows that the 109 million DOGE tokens were transferred from a private address ‘DF8jRK’ to ‘DHQsfy’, an address linked to US retail crypto platform Robinhood.
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At the time of transfer, the tokens were collectively worth $11.58 million, making it one of the largest Dogecoin transactions in 30 days. Consequently, the transfer to Robinhood, a major crypto exchange, suggests that the whale may be preparing to sell its DOGE shares, which could drive down the price.
🚨 108,572,027 #DOGE (11,580,883 USD) transferred from unknown wallet to #RobinHoodhttps://t.co/rKRBitf8Qy
— Whale Alert (@whale_alert) July 8, 2024
In general, whale transfers to cryptocurrency exchanges like this one contribute to pessimistic sentiment among retail investors. It is interesting to note that a close examination of the data on the blockchain reveals that this is not the first time that the unnamed whale address has moved huge amounts of Dogecoin tokens to Robinhood in what appears to be a sell-off. If reported by NewsBTCa similar transaction took place in October 2023, when 71.2 million DOGE tokens were dumped into Robinhood at address “DF8jRK.”
What’s next for Dogecoin?
This latest selloff on Robinhood is just the latest setback for the popular meme cryptocurrency, which has been going through a challenging period.
In the past month alone, DOGE has lost approximately 25% of its value. below the low point $0.10 for the first time since February. Consequently, the meme cryptocurrency has lost a significant portion of the gains it collected in the first half of the year, when it peaked at $0.22.
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At the time of writing, DOGE is trading at $0.108 and remains in an active sell-off in the broader cryptocurrency market. According to average cost data from IntoTheBlock, Dogecoin bulls would need to break many resistance points around $0.109, $0.113, $0.117 and $0.1209 before regaining full bullish momentum from retail investors. This required for bullish momentum was also reaffirmed by Crypto Daily Trade Signals, which pointed out that DOGE price needs to stabilize above USD 0.1080 and USD 0.1150 to be considered bullish.
Featured image created with Dall.E, chart from Tradingview.com
