The price of Dogecoin (DOGE) experienced a significant decline yesterday coinciding with a large transfer of the meme-based cryptocurrency. According to data from Whale Alert, a whopping 245 million DOGE valued at roughly $49.6 million at the time was transferred to the popular trading platform Robinhood.
This hefty transaction seemingly triggered a sell-off causing the price of DOGE to plummet by nearly 8% over the past 24 hours. While the price has partially recovered with a 2% rebound, it remains lower than its pre-transfer level. As of press time, DOGE is trading at $0.1964, down from $0.2084 yesterday.
The reasons behind the price drop and the identity of the sender behind the massive transfer remain unclear. The sudden influx of DOGE to Robinhood could indicate potential selling pressure, impacting the coin’s value.
While the recent price dip might raise concerns, analysts remain cautiously optimistic about Dogecoin’s long-term prospects. Dogecoin has shown resilience with its price on the monthly scale up 20% despite a recent consolidation around the psychologically important $0.20 mark. This level is crucial for DOGE to potentially reach new highs as it hasn’t been surpassed since November 2021.
While the monthly price is positive, Dogecoin’s market capitalization has dipped to $29 billion, and 24-hour trading volumes have also fallen by 9% to $2.2 billion. Despite the consolidation, some analysts believe a new bull run for DOGE is on the horizon.
Prominent crypto trader Rekt Capital suggests DOGE is currently retesting the $0.20 level on the monthly timeframe. A successful break above this resistance point could unlock further upside potential, potentially pushing the price towards $0.30 or higher.
Other analysts too share this bullish sentiment. Mikybull Crypto echoes Rekt Capital’s optimism, and some even predict prices exceeding $1 mirroring previous DOGE cycles. More extreme forecasts suggest potential surges to $2, $9, and even $40.
