Dogecoin (DOGE) has faced a significant shakeup following a massive selloff by two prominent whales, totaling 219 million DOGE, valued at approximately $74 million. The market has reacted with heightened concern, with experts closely monitoring the potential impact on Dogecoin’s price.
Whale Movements and Market Reactions
Recent data from Whale Alert revealed that the two whales moved a substantial amount of Dogecoin to Coinbase, a leading cryptocurrency exchange. One whale, identified by the wallet address “D7fXy…4QLW3,” transferred 106.43 million DOGE worth $35.88 million. Another whale, with the wallet address “D8hi4..RsF1j,” followed suit, moving 112.62 million DOGE valued at $37.99 million. This selloff, which came as Dogecoin experienced a brief price recovery, is seen as a sign of dwindling investor confidence in riskier assets, including meme coins.
Elon Musk’s Impact on Market Sentiment
The timing of this whale activity coincides with a change in tone from Dogecoin supporter Elon Musk. Musk, who recently co-headed the Department of Government Efficiency (D.O.G.E.), lowered his expectations for cutting US Federal spending. Initially, Musk had proposed cutting $2 trillion from the federal budget, a figure he now describes as a “best-case outcome,” suggesting that a more realistic reduction would be closer to half that amount. His revised stance has led to further concerns in the Dogecoin community, given Musk’s association with the meme coin and the department’s name resembling DOGE.
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Dogecoin Price Trends Amid Volatility
Despite this selloff, Dogecoin’s price has seen some volatility this week, with a 2% decline to $0.33. The cryptocurrency’s trading volume dropped by 15%, reflecting broader bearish sentiment in the market, influenced by strong US job data and reduced expectations of a Fed rate cut. However, market sentiment remains mixed, with some analysts predicting a potential recovery, eyeing the $0.35 mark as a short-term target.
Also Read: XRP Flashes Bullish Signal, Cardano (ADA) Targets $3, and Whales Accumulate Dogecoin (DOGE)
Dogecoin’s future remains uncertain, but the developments from both whales and Musk have certainly added to the complex market dynamics.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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