The cryptocurrency market has been experiencing heightened volatility, with Bitcoin (BTC) dipping below $30,000 and other assets failing to sustain their recent highs. Meme coins, including Dogecoin (DOGE), have succumbed to the ongoing downtrend, resulting in DOGE dropping below $0.080.
Adding to the uncertainty is whales’ significant movement of DOGE in the market. Recent data shows that a staggering 151 million DOGE were transferred from the world’s largest cryptocurrency exchange, Binance, and moved to an unknown wallet. This substantial transfer of DOGE has raised questions and increased speculation in the market.
Indeed, the sheer magnitude of the transaction could impact the market. However, upon further examination, this transaction may simply be part of internal wallet reshuffling.
Similar transactions have occurred over the weekend, involving the movement of Dogecoin from Binance to unknown wallets. This indicates that it may not indicate any significant changes in the overall market dynamics but rather a routine process of transferring funds within wallets.
Read Also: Shiba Inu Vs. Dogecoin: Who Will Do Better In 2023?
Dogecoin’s Outlook for the Week
Despite significant whale movements, Dogecoin (DOGE) has struggled to break out of its downtrend. Earlier today, DOGE briefly rose to $0.08063 but failed to gain the necessary support to move beyond this zone.
As a result, the asset slipped to a low of $0.07744. Currently, DOGE is trading at $0.07912, reflecting a 1.47% daily drop. Surpassing the $0.08 mark remains a challenging task for DOGE in the week ahead.
The daily chart of Dogecoin displays bearish characteristics, with the Parabolic SAR indicator showing dotted lines forming above the candlesticks, acting as resistance against potential price increases. Additionally, the Relative Strength Index (RSI) indicator indicates that sellers currently dominate the DOGE market, as the RSI marker is below the 50 medians, signaling a bearish sentiment.
Read Also: Dogecoin Investor Raked in $2 Million in Just 69 Days
However, despite the slump, Dogecoin holders have still made profits. According to data from Into The Block, 54% of DOGE holders are making money at the current price, while 43% are enduring losses. This suggests that the setback DOGE is experiencing may not be excessively detrimental, as most holders are still in a profitable position.
