Dogecoin Price Takes a Hit as Whale Dumps 119 Million Tokens
Dogecoin (DOGE) has been facing some headwinds lately, with its price taking a sharp hit after a major whale dumped 119 million tokens on Robinhood. This move has raised concerns among investors, even as Tesla and Elon Musk continue to support the meme coin.
Whale Dump and On-Chain Activity
The massive sale of DOGE, worth $11.70 million, sent shockwaves through the market. This, coupled with a significant decline in on-chain activity, suggests that large-scale investors are losing faith in the asset. Daily inflows of DOGE have dropped significantly since the beginning of September, while outflows have increased.
Market Uncertainty
Despite positive news, such as Elon Musk’s confirmation that Tesla accepts DOGE as payment, the coin’s price has remained sluggish. This has led to market uncertainty about its future direction. Investors are also concerned about the recent decline in the value of DOGE futures open interest.
Technical Indicators
The recent price action in DOGE has been accompanied by a decline in technical indicators. The Relative Strength Index (RSI) is currently at 40, suggesting that the asset is oversold.
What’s Next for DOGE?
It remains to be seen what the future holds for DOGE. The recent whale dump and declining on-chain activity are concerning signs, but the continued support from Elon Musk and Tesla could help to offset some of the bearish sentiment. Investors will be closely watching the price action in the coming days and weeks to see how the meme coin responds to these latest developments.
