- A DOGE whale has sent 300 million Dogecoin (DOGE) to Binance.
- Historically, such movements have often increased price volatility.
- It has also led to an uptick in exchange reserve, which is common in a bear market.
In a post on X (formerly Twitter), Whale Alert, an account dedicated to tracking the trading activity of crypto whales, found that a staggering 300 million Dogecoin (DOGE), valued at approximately $24.51 million, was transferred from an unknown wallet to leading cryptocurrency exchange Binance earlier today.
Watch Out For a Price Dip
This kind of whale movement is often considered a bearish signal for several reasons. First, large transactions of this nature have been known to trigger price fluctuations as investors react to the perceived motivations behind the move.
DOGE’s price movements assessed within a 12-hour window period showed that this volatility had set in. At the time of this writing, the gap between the upper and lower bands of the coin’s Bollinger Bands indicator was starting to widen.
When the gaps between these bands widen, it is generally interpreted as a sign of increased volatility.
Likewise, the coin’s Average True Range initiated a sharp uptrend in the last 24 hours and has risen by 50% within that period.
This indicator measures market volatility by calculating the average range between high and low prices over a specified period. When it surges, it means that the average price swings of the coin are becoming larger within a given period.
Also, sudden large whale deposits onto crypto exchanges often indicate an intention to sell. When there is a sharp uptick in an asset’s exchange reserves, it means that selling activity is gaining momentum. This has been known to put downward pressure on an asset’s price.
Bears Are in Control
At press time, DOGE traded at $0.082. According to data from CoinMarketCap, its price has declined by 10% in the last 24 hours.
Readings from the coin’s Directional Movement Index (DMI) confirmed the bearish sentiment that permeated the market at press time. At the time of writing, the coin’s positive directional index (green) at 12.31 rested below its negative directional index (red), which was in an uptrend at 42.32. These values showed that the bears had successfully pushed out the bulls, and have initiated coin sell-offs.
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