Dogecoin Whale Dumping 176M DOGE Raises Concerns, Is A Correction Ahead?

A Dogecoin whale raised severe market concerns as the week kicks off, recently dumping nearly 176 million DOGE to a crypto exchange. Despite the renowned dog-themed meme token already being on a price rally, the whale dump emerged, raising investor sentiments of a looming correction. Meanwhile, DOGE price beat Bitcoin in intraday gains, soaring 4% despite the massive dump. Market watchers speculate over the asset’s future price trajectory in the wake of recent market statistics.

Dogecoin Whale Dump Amid Rally Raises Investor Concerns

In a notable shift of events, a Dogecoin whale was recorded to have dumped 176.64 million DOGE, worth $25 million, to the leading crypto exchange, Binance. As per Whale Alert data, the wallet address DD1…jCn moved the abovementioned amount of coins to Binance as of October 20. The transaction, underscoring a loss of investor interest in the asset, ignited bearish market concerns surrounding the leading meme coin’s future price action.

However, it’s worth mentioning that the token is currently on an uptrend against the backdrop of Musk-related events amid the ongoing U.S. presidential buzz. CoinGape Media reported the token to be riding bullish waves amid Elon Musk’s recent donation worth $75 million to elect Donald Trump. Nevertheless, the massive Dogecoin whale dump, bringing selling pressure to the asset, births severe concerns surrounding the coin’s future price trajectory.

Is A Correction Next For DOGE?

At press time, DOGE price witnessed gains worth 4% in the past 24 hours and is currently trading at $0.1473. The coin’s intraday low and high were $0.1376 and $0.1488, respectively. Notably, weekly and monthly charts for the token illustrated gains worth 32% and 39%, respectively. However, as mentioned above, investors remain apprehensive about future movements due to the aforementioned massive Dogecoin whale dump.

Further, Coinglass data indicated a 0.5% dip in DOGE futures OI to $1.06 billion, adding to market concerns orbiting the asset. A recent DOGE price analysis by CoinGape Media indicated that the meme coin eyes a correction ahead after noting roughly 30% weekly gains as it entered into an overbought region. Notably, the analysis indicated that the asset’s price stretched too far from the Exponential Moving Average, pointing out that buyers overextended the recovery trend. This dynamic flags that the coin could witness a correction due to being overbought.

Additionally, an X post by crypto market analyst Ali Martinez over the weekend indicated that TD Sequential flashed a sell signal on the coin’s daily price chart. This metric further hinted that the Dogecoin eyes a brief correction before the continuation of an uptrend. Altogether, recent market dynamics collectively hint that the meme-themed crypto is readying for a potential correction ahead.

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Coingape Staff

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Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.