Are they buying or selling?

On-chain data shows that Dogecoin whales have made some large transactions in the last 24 hours. Here's what they did.

Dogecoin whales have been making transfers to and from exchanges

According to cryptocurrency transaction tracking service Whale Alert, several large transfers were spotted on the Dogecoin blockchain in the past day.

All of these movements are of a magnitude that is generally associated with whales, entities that transport huge balances in the network. In general, an investor's influence in the market increases the more holdings he or she holds, so the members of this group may have some power due to their size.

Therefore, it may be worth keeping an eye on the transactions made by whales, because even if they do not end up having a direct impact on the market, they can still reveal the sentiment among this cohort.

Exactly how a whale transfer might affect the asset depends on what the investor intended with the move. Usually it's pretty difficult to say anything about it with certainty, but sometimes addressing details can give a clue or two.

Of the six transfers whales made on the Dogecoin network in the last 24 hours, one was between two unknown wallets. Such addresses are not associated with any known central platform and will likely be investors' self-managed wallets.

For this reason, transfers between such wallets cannot be commented on as they are not identifiable due to the anonymous nature of the blockchain.

However, the other five transfers have a certain uniqueness: they all have one side of the movement: a wallet connected to an exchange. Here are the details of the latest DOGE transactions:

The details of the latest DOGE exchange inflow | Source: Whale Alert

As can be seen above, in this transaction, the whale transferred around $72.5 million worth of Dogecoin from an unknown address to a Coinbase wallet. Transfers flowing in this direction are called foreign exchange inflows.

Two other transactions involved foreign exchange inflows, one to Binance ($14.6 million) and the other to Robinhood ($14.2 million). This means that whales have transferred a total of $101.3 million to exchanges.

Generally, investors transfer coins into the custody of these central entities whenever they wish to use any of the services they offer, which may include sales.

The remaining two exchanges were of the opposite nature; these were foreign exchange outflows. In the first case, Robinhood recorded a withdrawal of $30.1 million, while in the other, Binance released $56.4 million worth of Dogecoin.

Holders self-custody their coins if they want to keep them long-term, so outflows from the exchange can have a positive impact on the price. DOGE whales deposited $101.3 million to exchanges in the past day, which may be pessimistic, but they also withdrew $86.5 million worth of coins at the same time.

Therefore, any bearish effect on Dogecoin resulting from the sale may be at least partially mitigated by exchange outflows.

DOGE price

At the time of writing, Dogecoin is trading at around $0.29, up more than 21% in the last 24 hours.

Looks like the price of the asset has rocketed up over the last couple of days | Source: DOGEUSDT on TradingView

Featured image by Dall-E, Whale-alert.io, chart by TradingView.com