On-chain data shows that a Dogecoin whale made a large deposit on the Binance exchange, which could be bearish for the DOGE price.
Dogecoin Whale Moved to Binance Today
According to data from cryptocurrency transaction tracking service Whale Alert, a massive movement was spotted on the Dogecoin blockchain over the past day.
The transfer involved 112,382,564 memecoin tokens worth approximately $48.7 million when the transfer was executed on the network. Transactions of this size are usually associated with whales.
Whales refer to huge entities on the blockchain that can exert a certain degree of market influence through their ability to move quickly around large piles of coins.
Due to their key role in the ecosystem, transfers from these investors may be worth monitoring. These movements may not have a direct impact on the price of the asset, but they can still be useful in gauging sentiment within this cohort.
However, it is generally difficult to determine anything related to what a whale wants to do from its transactions alone. Networks like Dogecoin carry an inherent layer of privacy, so it’s not easy to tell whether a transaction is economic or a transfer between wallets of the same investor.
Fortunately, in the case of the current DOGE whale transfer, one of the addresses involved is connected to a centralized platform, leaving more room for speculation.
Below are the details of the transaction in question.
The transfer appears to have involved a fee of just 1.88 DOGE | Source: Whale Alert
As can be seen, the sending address in the case of this Dogecoin transaction was an unknown wallet, meaning it was likely the whale’s address. On the other hand, the receiver was a wallet connected to the Binance cryptocurrency exchange.
Transfers of this type, in which coins flow from a self-custodial address to an exchange, are called foreign exchange inflows. Typically, investors move their coins to these platforms whenever they want to use one of the services they offer.
This can include selling, so trading flows can sometimes lead to a bearish outcome for the memecoin price. For the current DOGE transaction, the amount involved is notable, but it is unclear whether the whale managed to sell or not.
DOGE Price
Dogecoin started the new week on a bearish note as its price observed a drop of almost 7% in the last 24 hours, falling to the $0.436 level.
Looks like the price of the coin has gone through a drawdown over the last couple of days | Source: DOGEUSDT on TradingView
Featured image of Dall-E, whale-alert.io, chart from TradingView.com
