Elon Musk’s recent hint at enabling Dogecoin (DOGE) for Tesla merchandise payment ignited positive sentiment for the largest dog-themed meme token across the broader market. Despite this optimistic buzz, DOGE whales have taken action to reduce their holdings, raising investor concerns. DOGE price reacted tanking slightly over 4% in the past 24 hours.
Dogecoin Whales Reduce Holdings Sparking Concerns
According to Whale Alert data revealed on September 4, a whopping 119.67 million DOGE was moved from the unknown wallet address DUU1Ru.. to Robinhood. This massive whale dump was equivalent to $11.70 million, underscoring a considerable loss of whale’s confidence in the asset.
Further, a recent report citing data from IntoTheBlock revealed that those holding at least 0.1% of the meme coin’s circulating supply have significantly reduced on-chain activity since the beginning of September. For context, as September kickstarted, inflows shredded from 229.49 million to 27.96 million DOGE per day. Moreover, outflows saw a significant increase, i.e. by 80.7%.
Altogether, recent on-chain data has showcased a loss of large-scale investors’ confidence in the asset. In turn, crypto market participants portray a bearish outlook for Dogecoin’s future.
DOGE Price Slips Despite Elon Musk-Birthed Optimism
Simultaneously, it’s also worth noting that despite Elon Musk confirming DOGE payments for Tesla merchandise recently, the coin has seen relatively slow adoption.
Moreover, U.S. District Judge Alvin Hellerstein dismissed the Dogecoin manipulation case against Elon Musk and Tesla this week. Despite these reliefs, the renowned dog-themed meme token has witnessed no price gains.
Riding along the broader market trend today, DOGE price witnessed a 3% dip in value today and is currently resting at $0.0963. The coin’s intraday low and high were $0.09298 and $0.1005, respectively. Weekly chart shows a pull back in DOGE price.
Pertaining to this, the token has sparked uncertain market sentiments over its future price action as it trades sluggishly despite bullish aspects unfolding across the broader sector. Additionally, the coin’s futures OI today witnessed a 3.5% dip in value to $446.31 million, raising investor concerns.
Also, it’s worth mentioning that Dogecoin’s RSI rested at 40, underscoring some downside pressure on the asset today. Altogether, DOGE’s price rally to $1 this year currently seems bearish. However, given the volatile nature of the market, crypto market participants continue to extensively eye the token for further price action shifts.
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