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A Dogecoin (DOGE) address that went inactive almost a decade ago has been awakened, sparking a suspicion for selloff in the community.
Possibilities of Dogecoin Selloff
The insights into the wallet activities was provided by crypto analytics protocol Whale Alert which revealed that the Dogecoin address has indeed been dormant for the past 9.5 years. The wallet contains a total of 2,002,447 DOGE tokens worth approximately $131,178.
💤 A dormant address containing 2,002,447 #DOGE (131,178 USD) has just been activated after 9.5 years!https://t.co/m1aIwd8s5O
— Whale Alert (@whale_alert) June 27, 2023
The actual reason why crypto addresses go dormant is unknown and there are many schools of thought, all of which cannot be ruled out. One of the more tenable assumptions is that the owners of the addresses got the tokens early and HODLed to enable the price to soar over the years.
Considering the length of time this address has been dormant for, the owner possibly acquired these tokens months after Billy Markus launched the first memecoin in 2013. The price of the token was still very low at the time and the 2 million DOGE tokens might be worth just about $424 based on a price of $0.0002114 per token as of November 2014 according to the data from CoinMarketCap.
Should this HODL assumption hold true, then the resurrected address is in enormous profit and as such, lends credence to any probable selloff move that might be made.
Will Dogecoin Price be Impacted?
It is not uncommon for dormant Whale addresses to re-awaken and they are typically usually not a threat to the current price action of the digital currency. Considering the fact that Dogecoin’s market capitalization is now pegged at $9 billion, the small dollar equivalent of the DOGE tokens in question is not big enough to impact the coin’s price action.
With the update of the reawakening shared a few hours ago, Dogecoin has notably seen a revival in its price. At the time of writing, the cryptocurrency is changing hands at a spot price of $0.06544, up 1.24% over the past 24 hours.
In the week to date period, Dogecoin has printed a 6.15% growth, a showcase of steady retail buyup.
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