The cryptocurrency market took a beating on April 7, now dubbed “Black Monday,” with major digital assets plunging sharply. The downward spiral impacted Bitcoin (BTC), Ethereum (ETH), and notably, Dogecoin (DOGE), whose price slid nearly 14% within the last 24 hours.
Dogecoin fell from $0.1667 on April 1 to as low as $0.1390 earlier today, before slightly recovering to $0.1474. Much of this downward pressure came after a massive on-chain transfer. On April 7, Whale Alert flagged a movement of 300 million DOGE (worth over $41.7 million) to Binance crypto exchange.
Massive Transfer by Dormant Wallet Fuels Fears of Incoming Sell Wall
Typically, large crypto transfers into exchanges indicate intentions to sell. Whales—holders controlling significant amounts of cryptocurrency—often send tokens to exchanges to liquidate their holdings.
Blockchain analysis identified the sender as wallet address “DU8gPC5,” a notably large DOGE holder. While this wallet hasn’t shown frequent transaction activity, it still commands attention due to its substantial holdings—over 4.29 billion DOGE worth approximately $606 million. Notably, the 300 million DOGE moved to Binance represents only 7% of its entire holdings, suggesting the whale may be testing the waters rather than fully exiting their position.
Santiment’s on-chain data offers deeper insight into DOGE whale activity. Over recent months, wallets holding between 100 million and 1 billion DOGE have been steadily declining. Conversely, mid-sized whale wallets—those with balances between 10 million and 100 million DOGE—have grown, showing redistribution among Dogecoin’s wealthy investors.
DOGE Approaches Crucial Support Level, Technical Breakdown Possible
Technical analysis of Dogecoin’s price chart also raises concerns. DOGE is currently forming a “descending triangle” pattern. In simple terms, this pattern usually indicates a downward price trend. Dogecoin’s price is nearing the lower boundary of this triangle, around the crucial support level of $0.13.
If DOGE breaks clearly below this $0.13 level, it might trigger more selling pressure and a further decline. Additionally, the Relative Strength Index (RSI), which measures buying and selling pressure, sits at around 35. A low RSI typically suggests weak buying momentum and can signal further potential downside.
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Dogecoin’s sharp decline aligns with the broader market downturn. Bitcoin dropped over 8% in the last 24 hours, trading around $76,210, while Ethereum fell more than 16%, touching $1,518. Altcoins like XRP, Cardano (ADA), and BNB also experienced significant weekly declines, each posting double-digit percentage losses.
While the DOGE sell-off is significant, the transaction itself does not confirm that a full liquidation has occurred. The whale still holds a massive DOGE balance.
