An unidentified crypto whale has reportedly transferred a massive 100 million Dogecoin (DOGE) to the popular trading platform Robinhood in what looks to be a major sell-off move.
While the general crypto market continues to undergo price corrections with investors hoping for a sooner-than-later price rally, some anonymous whales are busy transferring mouthwatering amounts of assets between wallets.
In a recent move, WhaleAlert – a blockchain transaction tracker, reported that it had spotted a huge amount of DOGE tokens moving from a wallet tagged as “unknown” to the US-based trading platform Robinhood.
Per the report, 100,000,000 Dogeoins equivalent to $7,836,678 ($7.8 million) were moved from the wallet to the aforementioned exchange.
🚨 100,000,000 #DOGE (7,836,678 USD) transferred from unknown wallet to #Robinhoodhttps://t.co/REEoqcGAoe
— Whale Alert (@whale_alert) February 7, 2024
This major activity has sparked speculations across the crypto community with many wondering about the intent. It is particularly alarming as this move comes at a time when the price of DOGE is facing a decline attributed to investors’ trading caution.
Potential reasons behind the transfers
Transactions of this magnitude could have several implications and can be attributed to a few reasons. Since the tokens were sent to a major crypto exchange, it could signify a potential sell-off by a large holder which could have a short-term effect on the price of the token.
Another possible reason for the transaction could be attributed to a strategic move by the large investor to take advantage of the Robinhood trading platform features. Whatever the intention, it could increase the volatility of the token and cause a major price shift in the market.
Dogecoin (DOGE) price reaction
According to data from Coinstats, the price of DOGE has slightly increased in the last 24 hours, jumping by 0.41%. Over the last month, however, the price has dropped by 3.23%.
In addition, the 24-hour trading volume of Dogecoin experienced a slight drop. Per Coinstats data, about $149,066,059 ($149 million) in the volume of Dogecoin has been traded in the last 24 hours, signifying a decline of over 15% from the previous day.
Ultimately, DOGE maintains the #10 spot in the top 10 cryptocurrencies in the market with a live market cap of $11,220,156,673 ($11.2 billion).
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