Dogecoin has been in a price decline for the past seven days as the entire crypto market continues to be dominated by a fear sentiment. Furthermore, the meme cryptocurrency recently encountered rejection due to fresh bearish pressure. This occurred as the cryptocurrency attempted to recover some of the losses it had sustained last week.
According to various social media posts by whale transaction tracker Whale Alerts, there have been multiple instances of large Dogecoin transfers in and out of exchanges during this price decline, with the latter being prevalent and contributing to the decline. Notable among these transfers is the transfer of 108.5 million DOGE tokens into Robinhood
DOGE Price In Trouble
Transaction details from the blockchain show that the 109 million DOGE tokens were transferred from a private address “DF8jRK” to “DHQsfy,” an address linked to the American retail crypto platform Robinhood.
At the time of transfer, the tokens were collectively worth $11.58 million, making it one of the largest Dogecoin transactions in 30 days. Consequently, the transfer to Robinhood, a major crypto exchange, suggests the whale may be preparing to sell their DOGE holdings, which could drive the price down.
108,572,027 #DOGE (11,580,883 USD) transferred from unknown wallet to #Robinhoodhttps://t.co/rKRBitf8Qy
— Whale Alert (@whale_alert) July 8, 2024
Generally speaking, whale transfers into cryptocurrency exchanges like this one contribute to a pessimistic sentiment among retail investors. It is interesting to note that a thorough examination of the data on the blockchain reveals that this is not the first time that the unnamed whale address has moved massive amounts of Dogecoin tokens to Robinhood in what appears to be selloffs. As reported by NewsBTC, a similar transaction occurred in October 2023, when 71.2 million DOGE tokens were dumped into Robinhood by address “DF8jRK.”
What’s Next For Dogecoin?
This latest sell-off on Robinhood is just the latest setback for the popular meme cryptocurrency, which has been experiencing a challenging stretch.
Over the past month alone, DOGE has shed around 25% of its value, bottoming out below $0.10 for the first time since February. Consequently, the meme cryptocurrency has lost a sizeable chunk of the gains it had accumulated during the first half of the year, when it peaked at $0.22.
At the time of writing, DOGE is trading at $0.108 and is still in an active sell-off in the broader cryptocurrency market. According to average cost data from IntoTheBlock, Dogecoin bulls would need to slice through many resistance points around $0.109, $0.113, $0.117, and $0.1209 before regaining full bullish momentum from retail investors. This requirement for bullish momentum was also reaffirmed by Crypto Daily Trade Signals, which pointed out that the price of DOGE must stabilize above $0.1080 and $0.1150 to be considered bullish.