Dogecoin whales are no longer interested in holding the digital currency as ongoing rout in the market has triggered an unusual selloff trend for DOGE.
The Dogecoin (DOGE) ecosystem entered a frenzy after some whales dumped their holdings. Within 48 hours, these whales dumped 1.32 billion DOGE. According to the current market value of the canine-themed memecoin, the heavy dump is worth $193.5 million.
Fading Risk Appetite Amongst Investors Reflects in DOGE Outlook
The broader cryptocurrency market has suffered losses these past few days. Tension increased for DOGE holders when these whales made the selloff move. In addition to the data from the blockchain analytics platform Santiment, which showed the transaction, crypto market analyst Ali Martinez also pointed out the alarming trend.
Unfortunately, it has now impacted the price of the memecoin, as DOGE is currently trading at $0.1466, down 2.85% in 24 hours. As it stands, this outlook reflects the fading risk-bet appetite that was synonymous with investors. Should this persist, DOGE’s price may sink further down the charts, as Martinez noted.
He says the waning risk appetite among investors could further drag prices lower in the coming days.
Some market observers still believe that the sell-off by the Dogecoin whales reflects the broader market’s volatile scenario. At the moment, it seems clear that many investors are gradually losing confidence in the growth prospects of DOGE.
Dogecoin Whales Were Optimistic About DOGE
Two months ago, the DOGE landscape was quite different as whales were more interested in accumulating the memecoin than dumping it. In February, these Dogecoin whales scooped over $101.7 million in DOGE. Martinez and Santiment were among those who spotted these large investors’ activities and reported them.
Interestingly, DOGE’s price was in a downtrend at the time. It was trading at $0.1854, giving credence to the narrative that whales and high-networth individuals were capitalizing on the dip and strategically accumulating DOGE at a lower price. In the present day, there are expectations that the memecoin will rebound massively after its current phase.
As suggested in a recent DOGE price prediction, DOGE is currently neutral and may hover here for some time. Martinez pointed to a crucial support level for the coin at $0.13. Investors are advised to be on the lookout for this key price level, as it could determine the short-term trajectory of DOGE.
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