A recent massive Dogecoin whale dump has raised concerns among investors, hinting at a potential correction for the meme coin. Despite a 4% price surge, this sell-off could signal future volatility for DOGE.
Whale Dump Raises Concerns Amid Dogecoin Rally
In a surprising move, a Dogecoin whale transferred 176.64 million DOGE (worth $25 million) to Binance, according to Whale Alert data. This event, occurring on October 20, raised concerns about diminishing investor confidence in Dogecoin. The timing is especially alarming as DOGE is currently riding a bullish trend, spurred by Elon Musk’s recent $75 million donation aimed at supporting Donald Trump’s presidential campaign.
Despite the whale dump, DOGE outperformed Bitcoin in intraday gains, climbing 4%. However, this significant transfer has left many market watchers speculating about the coin’s future price trajectory.
Is a Dogecoin Correction Coming?
At the time of writing, Dogecoin is trading at $0.1473, with daily gains of 4%. Over the past week, the meme coin saw a 32% rise, and in the last month, its value surged 39%. Yet, the massive whale dump has heightened fears of an impending correction.
Further adding to concerns, Coinglass data revealed a 0.5% dip in DOGE futures open interest (OI), down to $1.06 billion. Analysts suggest that DOGE might face a correction after its steep 30% weekly rise. The coin appears to be overbought, with its price extending far beyond the Exponential Moving Average (EMA), indicating that buyers may have overextended the recovery.
Additionally, crypto analyst Ali Martinez shared on social media that the TD Sequential indicator flashed a sell signal on DOGE’s daily chart. This suggests a short-term correction before any potential continuation of the uptrend.
