- A massive 1.74 billion DOGE transfer to Robinhood signals possible sell-off pressure, potentially impacting Dogecoin’s price.
- Despite potential sell pressure, analysts remain bullish on DOGE, with November historically showing gains and Bitcoin’s rally boosting sentiment.
Following a recent 72% surge in new DOGE addresses, CNF highlighted growing interest and increased network activity for Dogecoin. Now, Dogecoin’s price may face pressure following a major whale move, as billions of DOGE coins have been transferred to the Robinhood exchange.
1.74 Billion DOGE Transfer May Signal Sell-Off
The potential for Dogecoin’s price to drop has increased following the transfer of 1.74 billion DOGE ($278 million) by a single whale to Robinhood. This action follows Dogecoin’s recent price surge, which positioned it as one of the top gainers in the crypto market.
On-chain data reveals that this transfer occurred in six separate transactions, each moving approximately 290 million DOGE. Such large transfers to exchanges typically suggest the holders may intend to sell, which could exert significant sell pressure on the coin.
The whale’s timing aligns with a recent rally that saw Dogecoin gain over 19% in the last week, likely incentivizing profit-taking. Market dynamics further suggest that Dogecoin’s recent boost partly reflects Elon Musk’s indirect support via the Department of Government Efficiency (D.O.G.E.) and the broader Bitcoin price rally, with BTC nearing its all-time high of $73,700.
A Bullish Outlook Despite Selling Pressure
Despite anticipated sell-off pressure, Dogecoin’s price sentiment remains bullish. Crypto analyst Ali Martinez noted in an X post that historical patterns indicate November could lead to a parabolic rise for DOGE, advising traders to watch for a sustained close above the $0.20 level.
History hints that November could spark a parabolic bull run for #Dogecoin $DOGE! Keep an eye out for a sustained close above $0.20. pic.twitter.com/8NOLo6Jjoh
— Ali (@ali_charts) October 30, 2024
Historically, November has yielded mixed results for Dogecoin, but data from Cryptorank show a positive monthly gain of 22% for November 2023.
On a positive note, market sentiment currently supports Dogecoin’s bullish territory, with Bitcoin expected to soon breach its all-time high, especially given Donald Trump’s potential reelection.
In another CNF update, we learned that Dogecoin whales have made significant moves, purchasing over 1 billion DOGE, potentially signaling an incoming rally. Currently, Dogecoin (DOGE) is trading at $0.1702, with a decrease of 1.63% in the past day and a surge of 19.25% over the past week.
