Dogecoin Whale Transfers $5M In DOGE To Coinbase, Bearish Signal?

Keshav Verma

2 years ago

3 mins read

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Data shows a Dogecoin whale has deposited more than $5 million in the crypto to Coinbase. Here’s what it may mean for DOGE’s price.

Dogecoin Whale Sends 57 Million DOGE To Crypto Exchange Coinbase

As per data from the crypto transaction tracker service Whale Alert, a massive Dogecoin transaction has taken place on the blockchain today. In total, this transfer involved the movement of 57,056,400 DOGE, worth upwards of $5 million at the time the transaction was sent.

Since the amount here is so large, the entity behind the transfer is likely to be a whale, or at least a group made up of multiple large investors. Due to the sheer volume of tokens involved in transactions like these, they can sometimes cause noticeable ripples in the price of the asset.

But what change may potentially be produced in the crypto’s value from such a movement of coins depends on several factors, with the exact intent behind the transaction being the main one.

Here are some specifics surrounding the latest Dogecoin whale transaction, which may shed some light on why the investor decided to make this move:

Looks like the holder only had to pay a small fee of $0.21 for this massive transfer to be possible | Source: Whale Alert

As can be seen above, the sending address for this Dogecoin transaction was an unknown address, which is a type of address that’s unattached to any known centralized platform, and thus is likely a personal wallet. The receiver in this case was an address affiliated with the crypto exchange Coinbase.

Note that the transaction details show there being another receiver present for this transaction, with the total amount of the transfer being almost $10.5 million. But on closer inspection, it’s clear that it’s just the same address as the sender, meaning that this output is only showing the amount still remaining in the original wallet (that is, a bit more than $5.3 million, as $5.1 million went towards Coinbase).

A transaction like this where coins move from a personal wallet to an exchange is called an exchange inflow. Investors usually deposit to exchanges for selling purposes, so inflows can have bearish implications for the price of the meme coin.

If this Dogecoin whale truly made this transfer with the intent to sell on Coinbase, then DOGE may feel a negative effect from it. Data from WhaleStats, however, shows that the crypto was in the top 10 most bought tokens by the largest BNB Smart Chain (BSC) whales just yesterday.

JUST IN: $DOGE @dogecoin now on top 10 purchased tokens among 100 biggest #BSC whales in the last 24hrs 🐳

Check the top 100 whales here: https://t.co/0SYnjw0xQs

(and hodl $BBW to see data for the top 4000!)#DOGE #whalestats #babywhale #BBW pic.twitter.com/G6RCR4INnt

— WhaleStats – the top 1000 BSC richlist (@WhaleStatsBSC) January 23, 2023

Such accumulation from whales can generally be bullish for the price, so depending on the scale of these purchases, they can make up for any possible selling pressure today’s whale may cause. In such a scenario, Dogecoin would likely not feel any impact from the exchange inflow.

DOGE Price

At the time of writing, Dogecoin is trading around $0.0889, up 5% in the last week.

The value of the crypto seems to have climbed up in recent days | Source: DOGEUSD on TradingView

Featured image from Richard Sagredo 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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