On-chain data shows a Dogecoin whale has made a large deposit to the Binance exchange, which could be bearish for DOGE’s price.
Dogecoin Whale Has Moved Big To Binance Today
According to data from the cryptocurrency transaction tracker service Whale Alert, a massive move has been spotted on the Dogecoin blockchain during the past day.
The transfer involved 112,382,564 memecoin tokens worth around $48.7 million when the move was executed on the network. Transactions of this size are generally associated with the whales.
Whales refer to humongous entities on the blockchain that can carry some degree of influence in the market thanks to their ability to move around large stacks of coins quickly.
Because of their key role in the ecosystem, the transfers of these investors can be worth keeping an eye on. The moves may not directly impact the asset’s price, but they can still be useful to gauge the sentiment among this cohort.
Usually, though, it’s hard to gather anything related to what a whale wants to do from their transactions alone. Networks like Dogecoin carry an inherent layer of privacy, so it’s not easy to say whether a transaction is economical or a move between the wallets of the same investor.
Luckily, in the case of the current DOGE whale transfer, one of the addresses involved is connected to a centralized platform, providing more room for speculation.
Below are the details for the transaction in question.
The transfer appears to have involved a fee of just 1.88 DOGE | Source: Whale Alert
As is visible, the sending address in the case of this Dogecoin transaction was an unknown wallet, meaning that it was likely the whale’s address. On the other hand, the receiver was a wallet connected to the cryptocurrency exchange Binance.
Transfers of this type where coins flow from a self-custodial address to an exchange, are known as exchange inflows. Generally, investors move their coins to these platforms whenever they want to use one of the services they provide.
This can include selling, so exchange inflows can sometimes lead to a bearish outcome for the memecoin’s price. For the current DOGE transaction, the amount involved is notable, but whether the whale has made it to sell or not remains unknown.
DOGE Price
Dogecoin has kicked off the new week on a bearish note as its price has observed a plunge of almost 7% during the last 24 hours, coming down to the $0.436 level.
Looks like the price of the coin has gone through a drawdown over the last couple of days | Source: DOGEUSDT on TradingView
Featured image from Dall-E, whale-alert.io, chart from TradingView.com