Identifying if Dogecoin whale’s $30M transfer is the first sign of a sell-off

A Dogecoin whale has transferred 200 million DOGE to Robinhood, sparking concerns of a potential sell-off. Despite this, Dogecoin's price has continued to climb, with Futures open interest flashing bullish signs.

The crypto market has exhibited signs of a strong recovery lately, with Dogecoin (DOGE) riding the wave of bullish sentiments. Over the past week, DOGE's price has hiked by 6.8%. In fact, its appreciation of 4.4% in the last 24 hours has pushed the memecoin's price to $0.156 on the charts.

This resurgence has brought optimism to investors and traders who have been closely monitoring the crypto-asset for signs of sustained growth. However, a recent development involving a Dogecoin whale has sparked discussions within the community about the potential impact on the ongoing price rally.

According to data from Whale Alert, a whale transferred 200 million DOGE, worth around $30.86 million, to the trading platform Robinhood. This move is notable as it suggests the whale might be preparing to sell a huge portion of its holdings. This could potentially introduce selling pressure and affect DOGE's upward trajectory on the price charts.

Market dynamics and technical indicators

The transfer of 200 million DOGE to Robinhood has raised concerns about a possible shift in market dynamics. Such large transfers are often viewed as precursors to selling activities, which can lead to increased supply on the market. It can also potentially stop the prevailing price rally.

Here, it is worth questioning if this will affect the broader sentiment and whether it will lead to a reversal of Dogecoin's recent gains.

Meanwhile, in the derivatives market, there has been a noticeable hike in activity, with Dogecoin Futures open interest climbing by 8.44% to hit a figure of $886.38 million.

Source: Coinglass

The aforementioned figures indicate renewed interest from traders, particularly in the Futures market.

However, the dominance of short sellers, who have faced liquidations totaling $2.27 million according to Coinglass, suggests that a short squeeze could propel DOGE's value even higher. This, unless the anticipated selling pressure from the whale's transfer counteracts this trend.

Source: Coinglass

Technical outlook and future predictions

From a technical perspective, Dogecoin seemed to be showing signs of attempting to break its daily downtrend, at press time. The 4-hour chart revealed that DOGE recently entered an order block, which has contributed to its ongoing upward movement.

Despite this positive trend, however, AMBCrypto's analysis suggested that we can still anticipate a slight retracement for DOGE to $0.13 should the asset complete its break of structure to the upside on the 4-hour chart. This expected pullback would allow the asset to gather more liquidity at lower levels before potentially resuming its climb.

Source: DOGE/USDT, TradingView

Meanwhile, a recent report from AMBCrypto also revealed that a majority of DOGE holders are currently in profit. With short liquidations significantly surpassing long liquidations, prices are anticipated to rise further, potentially eliminating these liquidations.

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