DOGE reaches 5-month highs amid high exchange inflows

by

As a seasoned crypto investor with a knack for deciphering market trends, I must admit that the recent surge of Dogecoin has caught my attention. Having witnessed the meme coin’s meteoric rise and subsequent fall, I find myself intrigued by its current trajectory. The five-month high it reached earlier today is certainly a bullish sign, but the increased exchange net inflows and declining whale accumulation have me slightly cautious.

As a crypto investor, I’m thrilled to say that I rode the wave of optimism sweeping through the market today, with Dogecoin hitting a five-month peak of $0.1684. This bullish momentum has been quite exhilarating!

right now, Dogecoin (DOGE) is being exchanged at approximately $0.165, representing a 15% increase over the previous 24-hour period. The value of this popular meme-based cryptocurrency has pushed its market capitalization above $24 billion, and today’s trading volume amounts to around $3.8 billion.

Based on information from IntoTheBlock, approximately 350 million DOGE were transferred to centralized exchanges on October 29, coinciding with a surge in Dogecoin’s price movement. Over the last seven days, Dogecoin has seen a net inflow of more than $51 million into these exchanges.

A rise in incoming funds from trades often suggests that some investors might be cashing out their gains, potentially leading to a adjustment or decrease in prices.

Despite being 77% down from its all-time high of $0.737, 85% of DOGE holders are still in profit. 

Whales join the show

The rise in Dogecoin’s price beyond $0.14 led to an escalation in whale activity, as indicated by ITB data. Specifically, large transactions involving at least $100,000 worth of DOGE increased from 1,230 to 2,290 between October 27 and 28.

Yesterday, a grand total of 15.5 billion units of Dogecoin were transferred by whales. Over the last week, there have been significant transactions amounting to a total of approximately $3.46 billion in Dogecoin.

Contrarily, the amount of Dogecoin held by large investors (whales) has been steadily decreasing over the past five days. This decline started with a net increase of 456 million DOGE on October 25 and reached only 3 million DOGE by October 28.

Declining whale inflows could increase the selling pressure. 

A temporary dip in Dogecoin’s price might occur before another rise, given the significant trading activity and the influx of exchanges involved.

Read More

2024-10-29 15:08