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A Dogecoin wallet that has been inactive for almost two years has recently transferred a significant amount of DOGE to a new address, amounting to 326.4 million DOGE or roughly $28 million at the time of the transfer. This transfer has caught the attention of the crypto community, with many speculating on the potential impact on DOGE's price.
There are a couple of potential scenarios that could play out. The first is that the large transfer could lead to downward price movement for DOGE. If the recipient of the coins immediately sells them on the market, this could lead to a sudden increase in supply and a subsequent drop in demand, pushing the price down. However, if the recipient holds onto the coins and does not sell them immediately, the impact on the price may be minimal.
A wallet that had been dormant for almost 2 years transferred 326.4M $DOGE ($28M) to a new address ~30 mins ago.
— Lookonchain (@lookonchain) February 17, 2023
Will anything happen to #Dogecoin?https://t.co/dfo3nPT07l pic.twitter.com/5pH239NfDn
It is important to note that this is not the first time a large amount of DOGE has been moved around. In fact, earlier this year, a whale transferred 36.8 billion DOGE, which was worth around $1 billion at the time. Despite this large transfer, DOGE's price remained relatively stable.
Arman ShirinyanHowever, it is worth mentioning that DOGE has seen a mixed performance in recent times. The asset's price surged significantly earlier this year, driven by support from high-profile individuals like Elon Musk. However, the market-wide correction in February saw DOGE's price plummet along with other cryptocurrencies, and it has struggled to recover since then. While DOGE has shown signs of life in recent weeks, it has also seen its fair share of volatility.
At press time, Dogecoin is trading at $0.086, with a 2% price increase in the last 24 hours.
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