Dogecoin Price Drops as Major Holders Reduce Their Stakes

Elon Musk's recent suggestion that Dogecoin (DOGE) could be used for Tesla merchandise has generated significant excitement in the crypto space.

This potential development has driven positive sentiment towards DOGE, fueling hopes for increased adoption. However, this optimism is tempered by a notable reduction in holdings by major DOGE investors. In the past 24 hours, the price of DOGE has dropped approximately 4%, reflecting these concerns.

A substantial transfer of 119.67 million DOGE, equivalent to $11.70 million, was recently recorded, highlighting a significant sell-off by large holders. This move, from an unknown wallet to the Robinhood platform, indicates a loss of confidence among major investors in the cryptocurrency.

Data from IntoTheBlock further reveals a sharp decrease in on-chain activity among large DOGE holders, with daily inflows plummeting from 229.49 million to just 27.96 million DOGE since early September. At the same time, outflows have surged by over 80%, underscoring a shift in investor sentiment.

Despite Musk’s confirmation of DOGE payments for Tesla merchandise and the recent dismissal of a lawsuit alleging DOGE price manipulation against Musk and Tesla, the token’s value continues to struggle. Today, DOGE experienced a 3% decline, bringing its current price to $0.0963.

This decline persists even amid broader market trends and positive news, indicating a complex market environment for Dogecoin. The combined effect of whale sell-offs and slow adoption of DOGE payments could suggest ongoing volatility for the meme token in the near future.