Whales Dump 570 Million DOGE, Is Dogecoin Price Rally Threatened?

There is a subtle shift in the crypto ecosystem with altcoins like Dogecoin (DOGE) currently facing price uncertainty from market whales. According to data insight from crypto analyst Ali Martinez, over the past week, as many as 570 million DOGE were unloaded by whales. With the current outlook, the potential impact on the Dogecoin price remains a concern for market watchers.

Dogecoin and the Whales Offset

According to the current market outlook, the 570 million DOGE whale was worth approximately $89.26 million. Per the chart shared, the selloff came mostly from whales holding between 10 million and 100 million DOGE. The chart trend shows that the current level is the lowest these whales have traded the coin since at least April 6.

The related DOGE whale dumping trend has been recorded in the past, and it has had a visible impact on the price of the memecoin. Despite this offsetting trend, one Analyst on X, Olivier Maximus, maintained conviction that this will not derail the growth trend.

The overall impact of the market selloff often causes a shift in positive sentiment. As a result, more holders, whether retail or institutional, can choose to start selling their coins, which is a bad move for the price.

Dogecoin Price: Is There a Threat?

With a broad-based price offset, DOGE as an asset is not in isolation now, as other coins are also facing brutal whale selloffs. However, Dogecoin’s price volatility hinges on different ecosystem trends, which have placed it in the spotlight.

At the time of writing, the top memecoin was changing hands for $0.1572, down by 0.25% in 24 hours. The coin maintains consolidation at the $0.16 price level, forming a formidable resistance in the short term. 

Notably, earlier DOGE price analysis teased a potential $5.6 breakout based on a falling wedge formation. Despite the whale selloff, as spotted earlier, the price recovery trend is evident. Dogecoin is not under valuation threat in the short term.

The DOGE ETP Advantage

Although volatility is a major challenge for Dogecoin, the digital currency also has some positive ecosystem offerings. As reported earlier, Swiss asset manager 21Shares launched Dogecoin ETP, the first product of its kind in the industry.

This product is considered a major precursor to the expected spot Dogecoin ETF product in the United States. These products generally negate the outlook defined by the volatility and whale selloff as they may usher institutional investors to the memecoin soon. Beyond 21Shares, other asset managers, including Bitwise and Grayscale Investments, are also pushing for similar products.