Dogecoin Faces a Downturn as Large Transfers to Coinbase Occur

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The largest memecoin Dogecoin (DOGE), after a noteworthy price rally, is now facing a decline. This downturn recently pushed the altcoin below the $0.22 level. Information revealed by Whale Alert, a platform that tracks significant blockchain movements and shares them publicly, shows that approximately 140 million DOGE were transferred to a centralized exchange (CEX), Coinbase, which is considered a potential trigger for the decline.

$30.22 Million Worth of DOGE Transferred to Coinbase

Whale Alert recently reported that a total of 139.99 million DOGE, valued at $30.22 million, was transferred to the Coinbase exchange. The timing of this transaction coincides with the price drop of the altcoin, which seems to have contributed to the decline. The increase in DOGE supply on exchanges, occurring simultaneously with the price drop, reflects the downward trend.

However, despite today’s price drop, Dogecoin‘s longer-term price charts indicate a shift from a downtrend to an uptrend characterized by a U-shaped recovery, showing signs of sustained upward momentum.

Market Dynamics Negative

The negative signals among Dogecoin’s market dynamics have led to speculation among traders and investors worldwide. On-chain data also points to a downward trend for DOGE and suggests that the altcoin’s price volatility may continue.

The recent price movements of the altcoin have attracted significant investor interest, while derivative data indicates a 3.08% decrease in open interest (OI) and a 46.28% reduction in volume, signaling an overall bearish trend.

Before the latest drop, DOGE’s price successfully surpassed the resistance level of $0.206, reaching its highest point in 28 months at $0.2288, which excited investors. However, following the recent decline, DOGE’s price is expected to retest the last broken resistance level and confirm it as a support level. Analysts predict the altcoin could rise to levels of $0.27 and $0.30. Current data shows DOGE trading at $0.2125, down 1.62% in the last 24 hours.