Dogecoin Whales Transfer 400M Tokens To Exchange, As DOGE Continues To Rise

PATNA (CoinChapter.com) — A whale investor of the meme token Dogecoin (DOGE) has moved a boatload of tokens from their wallets to the Binance exchange.

Per a recent tweet by whale activity tracker @DogeWhaleAlert, an anonymous DOGE wallet, DJfU2p6woQ9GiBdiXsWZWJnJ9uDdZfSSN, made two transfers, one of 286,953,266 DOGE and the other of 114,010,343 DOGE to the exchange’s wallets, a total of nearly 401.1 million DOGE (nearly $40 million).

Both transactions occurred one after the other on Oct 28. The whale wallet now holds 522,645,316.19 DOGE tokens worth nearly $44.3 million at the time of writing.

Whale transactions hold significance on account of the large amounts they often involve since a single whale transaction can jostle the prices of an asset. Furthermore, retail traders often mimic whale movements, which could mean more DOGE tokens ending up on exchanges.

It seems Dogecoin whales are reacting to the news of Dogefather Elon Musk’s Twitter takeover. The memecoin’s prices started rising as news of Musk completing his Twitter deal by Friday. Traders and Dogecoin bulls expected Musk to start DOGE payments on the social media platform.

However, after Musk’s confirmation hit the wire, DOGE prices dropped from their intraday high on Oct 27.

Dogecoin(DOGE) Price Rockets Upward

Meanwhile, the Dogecoin token raced past its short and mid-term EMAs as DOGE price climbed 49.8% from Oct 25’s low of $0.059 and reached an intraday high of $0.089 on Friday. However, the long upper wicks on both ends of Oct 28’s daily candle indicate the massive struggle between bulls and bears.

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The bears seem to be aggressively defending the 200-day EMA (green wave), pushing back any attempts from bulls to move above it. The Dogecoin token price must hold above the 200-day EMA to challenge resistance near $0.088.

The $0.088 resistance has rebuffed the Dogecoin token price action multiple times since May 2022. Hence, moving above the immediate resistance could provide DOGE price the impetus to reach $0.099 before corrections pare gains.

The uptrend resulted in the meme token’s relative strength index becoming overbought, with a value of 83.68 on the daily charts. Often, overbought RSI levels forecast an impending trend reversal in favor of the bears.

As a result, DOGE price faces the risk of falling to support near $0.079. Moreover, if more traders move to profit from the recent uptrend, the Dogecoin token might fall to support near $0.072 before recovering.

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