Will Dogecoin feel the effects of this massive 990M transfer?

• A whale moved 990 million Dogecoins to another address.
• DOGE may fall below $0.08 in the near term.

Blockchain whale tracking platform Whale Alert revealed that 990 million Dogecoin (DOGE) was moved from one wallet to another on January 16th.

According to the post, the coin is reportedly worth $79.75 million. However, Whale Alert noted that it could not verify the public profiles of trading participants.

🚨 🚨 🚨 🚨 990,000,000 #viceroy Transferred (79,757,842 USD) from unknown wallet to unknown wallet https://t.co/Jtf8HzANTK

— Whale Alert (@whale_alert) January 16, 2024

Once coins are sent to an exchange, they are considered for sale. However, at the time of this writing, it is impossible to say whether the deal will lead to a sale. However, AMBCrypto found that such transactions appear to be “normal” within the Dogecoin ecosystem.

DOGE wants to crash

A similar transaction occurred on January 9th. There were about 1 billion coins. moving From Binance to another wallet. Immediately after that transaction, DOGE rose from $0.076 to $0.085. Between then and press time, the price of DOGE fell to $0.082.

In terms of trading volume, on-chain data shows that the measure has decreased to $296.74 million. This value is down significantly from its peak of $1 billion on January 12.

Source: Santiment

Moreover, this decline means that participants have reduced their involvement in buying and selling coins. Two other indicators that AMBCrypto considered were Dogecoin circulation and open interest per exchange.

Circulation shows the number of coins involved in a transaction within a given period of time. A decreasing indicator means there is less risk of selling pressure. However, increased circulation means increased usage.

Although this doesn’t always happen, an increase in circulation can be a precursor to a price drop. At press time, DOGE’s daily circulation had increased to 14.48. Like the circulation volume, the open interest on the exchange also increased to 111.96 million.

Source: Santiment

No breakout found.

Combined, the increase in circulating volume and open interest suggests the potential for a decline in DOGE. Accumulation/distribution (A/D) indicators also supported this potential. As of the 4-hour chart, A/D was stagnant at 27.14 billion.

This position implied that distribution ceased, but accumulation also ceased to exist. Either way, Dogecoin could fall below $0.08 or continue to move between $0.080 and $0.083 in the meantime.

Additionally, Bollinger Bands (BB) have been shown to have lower volatility as the bands contract.

Read Dogecoin (DOGE) price prediction for 2023-2024

This also confirmed the prejudice that DOGE is difficult to break through. However, if the bulls increase their buying pressure, DOGE may break the $0.083 resistance.

If this happens, there could be a move towards $0.09 next. But that may not be the case in the short term. However, if altcoins start to rise again, the price of DOGE may also rise.

Source: TradingView