The legendary volatility of Dogecoin has once again sparked attention. A 'whale' that had been dormant for years transferred over 312,375,048 DOGE, valued at over $60 million, to Coinbase in three transactions. This massive transfer, tracked by 'Whale Alert', has thrown the Dogecoin community into heated debate: is the whale capitulating and selling, or is it a prelude to a rebound?
This wallet has been inactive since 2021 and emptied all holdings when the price of Dogecoin fell below $0.20 - an 18% drop within two weeks. Historically, large transfers to exchanges usually indicate selling pressure, but analysts point out that the situation may not be that simple.
On-chain data shows that while retail investors panic due to price drops, institutional wallets have been accumulating DOGE at recent lows, suggesting that some large holders may be positioning for a rebound.
The technical indicators are showing complex signals. The RSI has fallen to 39-40, indicating that Dogecoin has entered the oversold zone. Meanwhile, the MACD on the 4-hour chart has turned bullish, and a descending wedge has formed across multiple time frames - a typical reversal pattern.
Trading volume has surged, with current support for futures open interest at $0.19-$0.21, and resistance at $0.25 and $0.30.
A 10% increase indicates that the market is preparing for significant volatility, but the direction remains unclear.
Despite the sluggish prices, Dogecoin's social influence remains strong. On June 1, Dogecoin's official X account posted a mysterious 'Supchat', sparking speculation in the community about potential collaborations or news. Additionally, the adjusted DOGE ETF application from 21Shares has garnered significant attention, with regulatory approval potentially being the catalyst for the next wave of DOGE's rise.
Accumulate or liquidate? Market suspense.
Is the whale cashing out at a low or strategically accumulating? The answer remains unclear. Although historically, large deposits to exchanges often signal a sell-off, the oversold technical signals, increased open interest, and accumulation by other whales suggest a potential rebound, especially when macro sentiment improves or meme catalysts appear. The next chapter for Dogecoin is worth close attention.
