Data shows a Dogecoin whale has withdrawn about $5 million in DOGE from the crypto exchange Binance, a sign that may be bullish for the price.
Dogecoin Whale Transfers Out $5.1 Million From Binance
As per data from the cryptocurrency transaction tracker service Whale Alert, a huge DOGE transfer has been spotted on the blockchain during the last few hours. This transaction involved the movement of around 67.4 million tokens, worth just under $5.1 million at the time the transfer was executed.
Since the amount involved here is so large, the source of the movement is likely to have been a whale. Transactions from this cohort can be of particular importance, as the sheer scale of coins involved in them can sometimes have the power to move the market.
Now, the main question that arises is, what implications would the latest whale transfer have on the price of Dogecoin? The exact answer to that depends on what the whale intended to accomplish by making this transaction.
Was selling the goal? Or was it accumulation? Here are some additional details surrounding the transfer that may shed light on the purpose behind it:
Looks like this massive transfer only required a fee of 0.00442444 DOGE to be possible | Source: Whale Alert
As you can see above, the sending addresses for this Dogecoin transfer were wallets attached to the cryptocurrency exchange Binance, while the receivers included, among other addresses, an unknown wallet.
An unknown wallet is one that’s unaffiliated with any known centralized platform (like an exchange) and is thus likely to be an investor’s personal wallet. The transfer amounts listed in the above image are significantly more than the aforementioned $5.1 million sum, but that’s only because there were some outputs going back inside Binance wallets.
The relevant movement there is only the one that’s going toward the unknown wallet, which did only involve a transfer of about $5.1 million. Transactions like these, where coins move from exchanges to unknown addresses, are called “exchange outflows.”
Generally, investors make such transfers when their aim is to hold onto their Dogecoin for extended periods. Thus, exchange outflows can have a bullish effect on the price of the cryptocurrency.
In the current case, since the investor involved is a whale, the impact on the price could be especially bullish. However, that would only be if the intent really is accumulation here.
In some cases, whales withdraw from exchanges not for keeping the coins in safe storage, but for selling them through other means like over-the-counter (OTC) deals. Naturally, if this scenario is the one that holds true here, then Dogecoin could feel a bearish impulse from the move instead.
At the time of writing, Dogecoin is trading around $0.0739, down 9% in the last week.
The value of the asset seems to have suffered from a plunge just a few days back | Source: DOGEUSD on TradingView
Featured image from Kanchanara on Unsplash.com, chart from TradingView.com