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The largest memecoin by market value, Dogecoin (DOGE), experienced a sharp decline due to the overall downturn in the cryptocurrency market. DOGE lost significant value in the last 24 hours, influenced by the general downward trend in the cryptocurrency market. This decline was exacerbated by a large sale from a major investor or “whale,” causing the price to drop below the critical support level of $0.1. This event triggered widespread bearish sentiment regarding Dogecoin’s future profit potential.
Whale Transfers $41 Million in Dogecoin to Binance
On-chain transaction tracker Whale Alert reported that on July 5, a cryptocurrency whale transferred approximately $41.08 million worth of 400 million DOGE to Binance, marking a significant development in the altcoin. The whale, whose wallet address starts with DU8gP…, still holds around $36.59 million worth of 379.80 million DOGE.
Data shows that the whale accumulated approximately 1 billion DOGE through the Binance exchange earlier this year, strategically selling off assets amid the bull cycle at the start of the year.
Investor Sentiment Turns Bearish for Dogecoin
The whale’s massive DOGE sale significantly impacted investor sentiment, with many seeing it as a loss of confidence in the altcoin’s short-term gains. Despite the whale still holding a large amount of DOGE, the immediate impact of the sales was negative. The heavy selling pressure pushed DOGE’s price below the $0.1 support level, intensifying the downward trend.
Current data shows DOGE’s price has fallen by 16.20% in the last 24 hours to $0.09563. Over the past 24 hours, the price ranged between $0.09379 and $0.1138. The recent price drop reflects the altcoin community’s reaction to the whale’s sale.
Furthermore, according to Coinglass data, Dogecoin’s Open Interest (OI) in futures contracts decreased by 14.88% to $503.97 million, reflecting the price drop. In contrast, derivative volume increased by 117.44% to $3.28 billion, indicating mixed feelings in the market. These conflicting data points suggest that while there is significant selling pressure, some investors are positioning themselves for potential future movements.
Currently, DOGE’s Relative Strength Index (RSI) is around the 24 level, indicating that the altcoin is in the oversold zone. This suggests a potential price recovery for the altcoin. However, given the prevailing bearish trend and recent significant sales, the short-term outlook for Dogecoin remains negative and uncertain.
