2 - 4 minute read
Dogecoin experienced an upswing in prices of roughly 30% following tech billionaire Elon Musk’s announcement on Twitter which changed the social media platform’s profile picture to that of the DOGE coin. However, on-chain analysts revealed that two of the biggest Dogecoin whales sold over a billion tokens causing concerns to potential investors. Blockchain companies monitoring Dogecoin transactions confirmed that the third and fifth largest Dogecoin holders sold a total of 1.4 billion DOGE. It was Whale ‘DDuX’ (the fifth holder) who reduced the highest share of the Dogecoin holdings, 1.1 billion DOGE ($95.2 million). Whale ‘D8ZE’ (the third holder) reduced 300 million DOGE ($28.6 million).
Dogecoin’s biggest supporters had reason to cheer on April 4th and 5th when DOGE was trading at $0.09. This was because the two whales made their separate transactions on the same days. It is important to note that these two whales are not exchange Dogecoin holders but instead are the biggest non-exchange holder of Dogecoins, as per BitInfoCharts.
The dogs got their day as the rally in Dogecoin did not slow down on April 6th, with the Dogecoin price holding firm at around 53 cents. The next day, on April 7th, the social media giant Twitter reverted to its blue bird logo. Elon Musk, meanwhile, is still fighting a $258 billion lawsuit accusing him of inflating the value of Dogecoin by over 36,000%. This occurred over two years before he allowed it to crash. Most of the allegations made claim Musk was merely promoting the digital asset through his Twitter account.
Dogecoin has been the subject of debate in the crypto community for the past few weeks. However, as it was gaining momentum, Musk’s announcement brought DOGE into the headlines, and some investors saw this as a golden opportunity. Nonetheless, the coins’ value has slumped to $0.0821, a percentage loss of 9.9% in the past 24 hours.
What This Means for Traders
The whale sales will impact the Dogecoin market as the transactions have left a sizeable hole in the DOGE hodlings, causing concerned traders to panic. As more and more whales sell off their DOGE holdings, and those who have been holding the tokens start selling, it could lead to a market vulnerability that could cause a sharp price drop. While it’s difficult to predict the direction of Dogecoin currently, it’s still best to pay attention to the market signals and keep current on the latest developments surrounding the digital currency.