Dogecoin whales are on the move once again as they have been caught buying up hundreds of millions in DOGE. However, what is interesting about this recent trend of whales accumulating DOGE is the mystery behind these addresses, as they are all brand new.
Dogecoin Whale Go On Buying Spree
According to Whale Alert, an on-chain data tracking platform for large crypto transactions, there have been a number of curious transactions carried out by new Dogecoin whales. The first of these transactions was carried out by a wallet that had received 515 million DOGE on February 16, worth approximately $44 million at the time. This wallet had not had any prior transactions before this and was a brand new wallet.
A couple of days after the wallet received the coins, they would proceed to send out a little over 512 million DOGE worth $43 million to another brand new wallet. Like the first, this wallet had not had any transactions prior to this and was a brand new way.
Two days later, on Thursday, February 22, the second wallet sent out 400 million DOGE to another brand new wallet, worth $34.11 million at the time of the transfer. The transaction, which was reported by Whale Alert, is the latest in a long line of whale transactions involving new Dogecoin wallets over the past week.
— Whale Alert (@whale_alert) February 22, 2024
A possible explanation for the movements could be over-the-counter (OTC) transactions where whales buy coins directly from the owners so as not to impact the market with their activities. However, it could also be the same owner across all wallets who is spreading out their large holdings ahead of the bull market.
Possible Impact On DOGE Price
If any of the two scenarios outlined above are the reasons behind these transactions, then there will not be an impact on the price – at least a negative one. Buying OTC takes away possible sell pressure on the Dogecoin price, allowing it to maintain its market value.
On the flip side, a single investor spreading out their holdings across different wallets is also bullish. The fact that none of these coins have so far found their way to a centralized exchange shows that the person(s) behind the transactions are not looking to sell.
It also tracks the general market trend of the DOGE price, which has held up above $0.084. However, the lackluster performance from Dogecoin has caught up with it as it has been pushed out of the top 10 cryptocurrencies by market cap. Tron, Justin Sun’s blockchain, and its native token TRX is now the 10th-largest crypto project with a market cap of $12.3 million at the time of writing.