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The market has been choppy all week, but one thing stood out from the usual chartspotting: a new Dogecoin whale pulled 52.9 million DOGE off the world's largest crypto exchange, Binance.
That is almost $12 million worth of liquidity that left the exchange in just under a day. The movements came in two big tranches, first 32.9 million DOGE, then another 20 million, both routed into a wallet that appeared only recently and now holds the whole stash.
The scale is not as important as the context here. Dogecoin has a circulating supply in the hundreds of billions, but when a single address consolidates that much volume, it can change how the order book functions in the short term.
Binance is still the busiest place for DOGE, but now it looks like they have fewer of the coins available. This is usually seen as a sign that the holder does not want to trade them on the open market, but rather just hold on to them. This idea has been backed up by the past, when similar outflows happened before recoveries from local lows.
Dogecoin's price roller coaster
Prices have been changing a lot lately. DOGE dropped to $0.1899 earlier this week, but then it went up to $0.2205 at press time. The whale's timing lined up with that bounce, so now we are left wondering if this is just opportunistic accumulation or the start of something bigger.
The next important number to watch is $0.2350, but the bigger picture is that there is less money on the market and more power in the hands of one wallet.
For Dogecoin, a meme coin that is all about the show, the creation of a whale wallet holding over 52 million tokens is a big deal. What happens next could have even more impact than what is shown on the transaction log.
Dan Burgin
Vladislav Sopov
U.Today Editorial Team