Dogecoin’s price may encounter strong selling pressure after a whale moved billions of DOGE coins to the Robinhood exchange.
Transferring billions of DOGE coins by a behemoth to the Robinhood crypto exchange could result in substantial selling pressure on the Dogecoin price. This action is due to the meme coin’s recent price increase, making it one of the top gainers in the crypto market.
The price of Dogecoin may decrease due to the transfer of 1.74 billion DOGE
Following the transfer of 1.74 billion DOGE ($278 million) by a whale to Robinhood, the price of Dogecoin is at risk of declining. The whale executed these transfers in six distinct transactions, and on-chain data indicates that the Dogecoin investor transferred 290 million DOGE coins in each transaction.
These DOGE transfers to the top crypto exchange are substantial due to the significant sell pressure they could exert on the meme coin and the considerable sum involved. Transfers to exchanges are generally considered bearish, as they suggest that the holder is seeking to dispose of their coins.
This colossus may be seeking to capitalize on the recent crypto market rally, as evidenced by the substantial gains that the Dogecoin price has experienced. In the past seven days, the most prominent meme coin has experienced a rise of more than 19%.
The meme coin has experienced a price increase partly due to Elon Musk’s indirect support through the Department of Government Efficiency (DOGE). In the meantime, DOGE is also experiencing an increase in value due to the Bitcoin price rally, as the flagship cryptocurrency has retested its current all-time high (ATH) of $73,700.
Overall, the outlook for the Meme Coin remains optimistic
The Dogecoin price maintains a bullish prognosis despite the potential sell pressure it may encounter. Ali Martinez, a crypto analyst, stated in an X post that the history of DOGE suggests that November could be the catalyst for a parabolic bull run. He recommended that market participants monitor for a consistent close above $0.20.
Nevertheless, historical data from Cryptorank indicates that November has consistently been a divided month for the top meme coin. DOGE has only achieved four positive monthly returns since 2013, despite a 22% pricing increase in November 2023.
In the interim, the Dogecoin price is currently favorable, as indicated by the current sentiment in the crypto market. It is anticipated that Bitcoin will surpass its all-time high (ATH) shortly, particularly because Donald Trump, who is pro-crypto, is expected to become the next US president.
The meme coin is also expected to benefit from Donald Trump’s election as the next president, as it would enable Elon Musk to proceed with his proposed Department of Government Efficiency. The DOGE acronym’s similarity to DOGE will increase attention, inevitably leading to additional price rallies.
