Dogecoin Whales Are Active: Are They Buying Or Selling?

On-chain data shows the Dogecoin whales have made a few large transactions during the last 24 hours. Here’s what they have been up to.

According to data from the cryptocurrency transactions tracker service Whale Alert, several large transfers have been spotted on the Dogecoin blockchain during the past day.

All of these moves are of a scale generally associated with the whales, entities that carry humongous balances on the network. Generally, the influence of any investor in the market goes up the more holdings they carry, so the members of this group can hold some power owing to their large size.

As such, the transactions being made by the whales can be worth keeping an eye on, as even if they may not end up directly impacting the market, they can still be revealing the sentiment among this cohort.

How exactly a whale transfer might implicate the asset comes down to what the investor intended to do with the move. It’s usually quite hard to say anything about that with any certainty, but sometimes, addressing details can provide a hint or two.

Out of the six transfers the whales have made on the Dogecoin network in the last 24 hours, one occurred between two unknown wallets. Such addresses aren’t affiliated with any known centralized platform and will likely be investors’ self-custodial wallets.

Because of this, transfers between such wallets are impossible to comment on, as they have nothing identifiable about them, given the anonymous nature of the blockchain.

The other five transfers, however, have some uniqueness attached to them: they all have one side of the move: a wallet connected to an exchange. Here are the details related to the latest of the DOGE transactions:

As is visible above, the whale moved around $72.5 million worth of Dogecoin from an unknown address to a Coinbase wallet with this transaction. Transfers that flow in this direction are known as exchange inflows.

Two other transactions were exchange inflows, one to Binance ($14.6 million) and the other to Robinhood ($14.2 million). Thus, the whales have moved a combined $101.3 million to exchanges.

Generally, investors shift coins to the custody of these central entities whenever they want to use one of the services they provide, which can include selling.

The remaining two exchange transactions were of the opposite type; they were exchange outflows. In the first of these, Robinhood saw a withdrawal of $30.1 million, while in the other, Binance released $56.4 million worth of Dogecoin.

Holders take their coins off into self-custody when they plan to hold into the long term so that exchange outflows can be bullish for the price. DOGE whales have deposited $101.3 million to exchanges in the past day, which can be bearish, but they have also taken out $86.5 million worth of coins simultaneously.

Therefore, the bearish effect on Dogecoin arising out of the selling, if any, may at least partially be mitigated by the exchange outflows.

When writing, Dogecoin is trading around $0.29, up more than 21% over the last 24 hours.