The huge transfer of 1.74 billion DOGE to Robinhood signals possible selling pressure and could impact Dogecoin’s price. Despite the potential selling pressure, analysts remain bullish on DOGE, which has seen a historic rally in November, with Bitcoin’s rally buoying sentiment.
Following a recent 72% spike in new DOGE addresses, CNF highlighted growing interest in Dogecoin and increased network activity. With billions of DOGE coins currently being transferred to the Robinhood exchange, Dogecoin price could face pressure following large whale movements.
Transfer of 1.74 billion DOGE may be a sign of a sale
Dogecoin’s price is likely to fall after a whale transferred 1.74 billion DOGE ($278 million) to Robinhood. This action follows Dogecoin’s recent price surge that has positioned Dogecoin as one of the top gainers in the cryptocurrency market.
On-chain data shows that this transfer took place in six separate transactions, each of which moved approximately 290 million DOGE. Such large transfers to exchanges usually suggest that the holder may intend to sell, which can put significant selling pressure on the coin.
The whale’s timing coincides with Dogecoin’s recent rally, which rose more than 19% last week, and is likely to prompt profit-taking. Further market dynamics suggest that Dogecoin’s recent rally is due to indirect support from Elon Musk through the Department of Government Efficiency (DOGE) and a broader Bitcoin price rally with BTC approaching an all-time high of $73,700. This suggests that it partially reflects the
Bullish outlook despite selling pressure
Despite the expected selling pressure, Dogecoin price sentiment remains bullish. Crypto analyst Ali Martinez wrote on XPost that historical patterns point to a potential parabolic rally for DOGE in November, encouraging traders to see continued closes above the $0.20 level. advised to be careful.
History suggests November could trigger a parabolic bull market #Dogecoin $Doge! Note the continuation of the closing price above $0.20. pic.twitter.com/8NOLo6Jjoh
— Ali (@ali_charts) October 30, 2024
Historically, November has had mixed results for Dogecoin, but Cryptorank data shows a positive monthly return of 22% in November 2023.
On the bright side, market sentiment currently favors bullish territory for Dogecoin, with Bitcoin expected to reach new all-time highs soon, especially given Donald Trump’s likely re-election.
In another CNF update, we find that Dogecoin whales have made big moves, purchasing over 1 billion DOGE, potentially signaling a bull market is coming. Dogecoin (DOGE) is currently trading at $0.1702, down 1.63% over the past day and up 19.25% over the past week.
