Recent data from IntoTheBlock has shown a significant surge in whale activity around the popular meme cryptocurrency Dogecoin (DOGE) over the past 24 hours. Specifically, the volume of large transactions involving Dogecoin has jumped by 73.53%, totaling an enormous 14.75 billion DOGE. In monetary terms, this rise reflects an increase from $938 million to a whopping $1.67 billion. These numbers include only those transactions valued at over $100,000, marking a notable increase in whale-driven activity.
At first glance, these numbers seem promising, as whale activity often signals high market interest and volatility, which can influence price movements. However, upon closer inspection, there is a critical catch: the vast majority of these large transactions were centered around the selling of DOGE rather than buying. This means that while trading volumes spiked, the market may face downward pressure as more DOGE is sold off by these large holders.
The Details Behind the Sell-Off
This trend becomes even more apparent when analyzing the net flow data for whale addresses that control at least 0.1% of Dogecoin’s circulating supply. Over the last 24 hours, these addresses saw a net outflow of 245.44 million DOGE, representing a drop of 260.81 million coins compared to the previous day. Essentially, this highlights that the amount of Dogecoin being sold by whales has far exceeded the amount being purchased, further reinforcing the idea that the increase in whale activity is primarily driven by selling.
Whale Outflows Surge by Over 3,500%
The most significant contributing factor to this trend is the massive spike in DOGE outflows from whale wallets, which surged by an incredible 3,586% in just 24 hours. The total outflow volume shot up from 27.35 million DOGE to 980.8 million DOGE, signaling heavy selling activity. On the other hand, inflows to whale wallets also increased significantly, rising by 1,721% to 735.35 million DOGE. Despite this dramatic rise in inflows, they were still insufficient to offset the overwhelming outflow volume seen over the same period.
This data underscores a market dynamic where selling pressure is intensifying, potentially indicating a bearish outlook for Dogecoin in the short term. Traders and investors may want to keep a close watch on whale activity, as these large-scale movements can have a substantial impact on DOGE’s price trajectory moving forward.