Are they buying or selling?

On-chain data shows that the Dogecoin whales have made a few large transactions over the past 24 hours. Here’s what they’ve been up to.

Dogecoin whales have been making transfers to and from exchanges

According to data from the cryptocurrency transaction tracking service Whale Alertseveral large transfers have been seen on the Dogecoin blockchain over the past 24 hours.

All these movements are of a scale generally associated with the whales, entities that carry enormous balances on the network. In general, the influence of any investor on the market increases the more holdings they hold, so the members of this group can have some power due to their large size.

As such, the transactions made by the whales may be worth keeping an eye on, as while they may not end up impacting the market directly, they can still reveal the sentiment among this cohort.

How exactly a whale transfer can implicate the asset depends on what the investor intended to do with the move. It’s usually pretty hard to say anything about it with any certainty, but sometimes address information can provide a hint or two.

Out of the six transfers the whales have made on the Dogecoin network in the last 24 hours, one happened between two unknown wallets. Such addresses are not associated with any known centralized platform and are likely to be investors’ self-deposit wallets.

Because of this, transfers between such wallets are impossible to comment on, as they have nothing identifiable about them, given the anonymous nature of the blockchain.

However, the other five transfers have something unique attached to them: they all have one side of the movement: a wallet connected to an exchange. Here are the details related to the latest DOGE transactions:

The details of the latest DOGE exchange inflow | Source: Whale Alert

As visible above, the whale moved $72.5 million worth of dogecoin from an unknown address to a Coinbase wallet with this transaction. Transfers flowing in this direction are known as exchange inflows.

Two other transactions were currency inflows, one to Binance ($14.6 million) and the other to Robinhood ($14.2 million). Thus, the whales have moved a total of 101.3 million dollars to exchanges.

Generally, investors switch coins to these central entities when they want to use one of the services they provide, which may include sales.

The remaining two exchange transactions were of the opposite type; they were exchanges. In the first of these, Robinhood saw a withdrawal of $30.1 million, while in the second, Binance issued $56.4 million in Dogecoin.

Holders self-deposit their coins when they plan to hold for the long term, so currency outflows can be bullish for the price. DOGE whales have deposited $101.3 million into exchanges in the past 24 hours, which may be bearish, but they have also withdrawn $86.5 million worth of coins at the same time.

Therefore, the bearish effect on Dogecoin arising from the sell-off, if any, may be at least partially mitigated by the exchange outflow.

DOGE Price

At the time of writing, Dogecoin is trading around $0.29, up more than 21% over the last 24 hours.

Looks like the price of the asset has rocketed up over the last couple of days | Source: DOGEUSDT on TradingView

Featured image from Dall-E, whale-alert.io, chart from TradingView.com