Dogecoin Plunges 7% As Whales Make Large Moves

Keshav Verma

2 years ago

3 mins read

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Dogecoin has plunged more than 7% during the past day as data shows that whales have made some large movements.

Dogecoin Whales Move Large Amounts On The Chain

According to data from the cryptocurrency transaction tracker service Whale Alert, five large transactions have been spotted on the DOGE blockchain during the last 24 hours.

Three of these transfers all saw the movement of the same amount of the meme coin: 600,000,018 DOGE worth $42,946,921 at the time the transactions took place.

The other two transactions were smaller and saw the travel of 337,520,424 DOGE ($24,159,104) and 399,999,992 DOGE ($28,631,279), respectively, across the network.

As all of these transfers saw the movement of such a large amount of Dogecoin, it’s likely that whale entities were behind them. Whales are humongous holders who carry significant amounts in their wallets, which makes them powerful existences on the network.

Surprisingly, all of these transfers were executed at the same time. Such large whale transactions aren’t exactly an everyday occurrence, so five of them happening simultaneously is interesting, to say the least.

Based on this and the fact that three of the transactions saw the movement of the exact same number of coins, the natural conclusion would emerge to be that the same entity was behind these transfers.

Indeed, as the blockchain data would confirm, all of these transfers have involved not only the same sending addresses but also the same destinations. This would imply that the investor or group of investors behind these transactions may have made all of these moves with the same goal in mind.

Here are some additional details regarding one of these Dogecoin transactions, which may provide hints about the reason behind why the transfers may have been done:

Looks like this transfer required a fee of just 2 DOGE to go through | Source: Whale Alert

Both the sending and the receiving addresses here seem to be unknown wallets, meaning that they are unattached to any known centralized platform (like an exchange). Generally, such wallets are investors’ personal wallets, which they may use for keeping their coins in for extended periods.

It’s always hard to say what the purpose behind a transaction between two unknown wallets may have been, as it could be anything from a simple change of addresses, to a sale made through over-the-counter (OTC) deals.

Usually, investors deposit to exchanges when their aim is selling, so it’s possible that the transactions in the past day may not have been because of the whale planning to sell.

However, as mentioned before, them being done for selling through OTC deals is still a possibility. In the last 24 hours, since these transfers have been made, Dogecoin has observed a sharp plunge of 7%.

The crash isn’t limited to the meme coin, as in fact most of the market has seen bearish price action during the past day. The impulse of this plunge seems to have been the US SEC suing the cryptocurrency exchange Binance.

Given these circumstances, it’s possible that the Dogecoin whale in question may have participated in the selloff after all.

DOGE Price

At the time of writing, Dogecoin is trading around $0.0667, down 8% in the past week.

The value of the memecoin seems to have plummeted hard today | Source: DOGEUSD on TradingView

Featured image from Kanchanara on Unsplash.com, chart from TradingView.com

Keshav Verma

Keshav is currently a senior writer at NewsBTC and has been attached to the website since June 14, 2021.

Keshav has been writing for many years, first as a hobbyist and later as a freelancer. He has experience working in a variety of niches, even fiction at one point, but the cryptocurrency industry has been the longest he has been attached to.

In terms of official educational qualifications, Keshav holds a bachelor’s degree in Physics from one of the premier institutes of India, the University of Delhi (DU). He started the degree with an aim of eventually making a career in Physics, but the onset of COVID led to a shift in plans. The virus meant that the college classes had to be delivered in the online-mode and with it came free time for him to explore other passions.

Initially only seeking to make some beer money, Keshav unexpectedly landed clients offering real projects, after which there was no looking back. Writing was something he had always enjoyed and to be able to do it for a living was like a dream come true.

Keshav completed his Physics degree in 2022 and has been focusing on his writing career since, but that doesn’t mean his passion for Physics has ended. He eventually plans to re-enter university to obtain a masters degree in the same field, but perhaps only to satiate his own interest rather than for using it as a means to find employment..

Keshav has found blockchain and its concepts fascinating ever since he started going down the rabbit-hole back in 2020. On-chain analysis in particular has been something he likes to research more about, which is why his NewsBTC pieces tend to involve it in some form.

Being of the science background, Keshav likes if concepts are clear and consistent, so he generally explains the indicators he talks about in a bit of detail so that the readers can perhaps come out having understood and learnt something new.

As for hobbies, Keshav is super into football, anime, and videogames. He enjoys football not only as a watcher, but also as a player. For games, Keshav generally tends towards enjoying singleplayer adventures, with EA FC (formerly FIFA) being the only online game he is active in. Though, perhaps due to being ultra-focused on the game, he is today a semi-pro on the EA FC scene, regularly participating in tournaments and sometimes even taking back prize money.

Because of his enthusiasm for anime and games, he also self-learned Japanese along the way to consume some of the untranslated gems out there. The skill didn’t merely remain as just a hobby, either, as he put it to productive use during his exploration for small-time gigs at the start of COVID, fulfilling a couple of Japanese-to-English translation jobs.

Keshav is also big into fitness, with agility and acceleration-related workouts making a big part of his program due to the relevance they have in football. On top of that, he also has a more traditional strength based program for the gym, which he does to maintain an overall fitness level of his body.

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