Data shows a Dogecoin whale has withdrawn $12 million in DOGE from Binance, a sign that could be bullish for the price of the asset.
$12 Million In Dogecoin Has Been Transferred Out Of Binance Recently
According to data from the cryptocurrency transaction tracker service Whale Alert, a large transfer occurred on the Dogecoin blockchain yesterday. This transaction saw around 151,605,154 DOGE move on the network, worth almost $12.1 million at the time the transfer went through.
As this movement involved such a massive number of tokens, it’s likely that a whale entity was behind it. Whales are an important part of the DOGE ecosystem, due to the huge size of their holdings. Their transactions can usually be something to look out for, as the sheer scale of coins involved in them can sometimes cause noticeable effects on the market.
The latest Dogecoin whale transfer can also possibly affect the market, but to know exactly in what way the move may influence the price, the intent behind the transaction must be known.
Here are some more details regarding yesterday’s large transfer, that may reveal additional context around it:
As you can see above, the sending addresses involved in this transaction were ones attached to the cryptocurrency Binance, while the receiver was an unknown wallet (there were also other outputs, but they were going back into Binance-attached wallets).
Unknown wallet” here refers to the fact that this address was unaffiliated with any known centralized platform (like an exchange). This means that this address was likely an investor’s personal, off-site wallet.
Transactions of this type, where coins move from centralized exchanges to holders’ personal wallets, are called “exchange outflows.” Generally, investors transfer their coins out of these platforms and into their personal wallets to hold onto them for an extended period of time. Because of this reason, exchange outflows can be bullish for the price of the cryptocurrency.
In the current case, the single large outflow has come after the DOGE price has taken a sharp plunge, which may imply that the whale is accumulating at the relatively low price levels being observed right now.
Naturally, this can be a positive sign for the market, as it shows that this humongous holder sees the current prices as only a discount, rather than the start of a large drawdown.
This would only be true, however, if the outflow has actually been made with accumulation in mind. There is always the possibility that this investor has only taken out this large stack for selling through peer-to-peer (P2P) deals. Obviously, this scenario would lead to more bearish price action for Dogecoin.
At the time of writing, Dogecoin is trading around $0.078, down 16% in the last week.
Dogecoin Price Chart
The value of the asset seems to have rapidly declined in the last few days | Source: DOGEUSD on TradingView