Dogecoin Declines Amid Increased Whale Activity

Dogecoin saw a significant drop as Bitcoin fell ahead of Mt. Gox repayments. The market downturn coincided with increased whale activity and liquidations.

On Friday, the cryptocurrency market faced notable declines, affecting major altcoins like Dogecoin. Whale Alert data showed large transactions: 400 million DOGE ($41.08 million) moved to Binance, with another 50.3 million DOGE transferred elsewhere, sparking sell-off speculation.

Billy Markus, Dogecoin co-founder (Shibetoshi Nakamoto), commented on Bitcoin’s decline, emphasizing its symbolic freedom value, which decreases with price drops.

Trader Tardigrade predicted a potential Dogecoin rebound, using Wyckoff Accumulation to identify buying opportunities during accumulation phases.

$DOGE has been playing Wyckoff Accumulation 🔥
“Spring” is here right now.
Next will be a Huge Rebound 🚀
Are you ready for your #Dogecoin? pic.twitter.com/2UGMUa5Mpl

— Trader Tardigrade (@TATrader_Alan) July 4, 2024

IntoTheBlock data noted a decrease in profit-taking among DOGE holders, down to 54% from 78-81%. Exchange net flows plummeted by 1,248.3%, while transactions over $100,000 rose to 338 on July 4, up from 239 the previous day.

Coinglass reported a spike in Dogecoin long liquidations, totaling $7.4 million on July 4, the highest since June 18. Short liquidations also rose to $1 million, the highest since June 25.

Alexander Stefanov