Dogecoin Faces More Pressure as 200M DOGE Lands on Binance

Dogecoin faces increased selling pressure as 200 million DOGE, valued at approximately $60 million, were moved to the crypto exchange Binance. The transfer comes amid a broader market correction, with major cryptocurrencies declining within the week. The move has raised concerns that a sell-off may be imminent, fueling a bearish outlook for the memecoin.

🚨 🚨 🚨 200,000,000 #DOGE (59,925,858 USD) transferred from unknown wallet to #Binancehttps://t.co/1sp3fToEdy

— Whale Alert (@whale_alert) December 20, 2024

Hovering around $0.31, DOGE is struggling with the broader crypto market. Its decline follows comments from Federal Reserve Chair Jerome Powell about the economic outlook.

Heightened Trading Activity

The large deposit of DOGE to Binance has intensified market concerns. Large transfers to exchanges often signal potential sell-offs and increased liquidity. The transfer occurred during a period of heightened trading activity.

In the last 24 hours, DOGE trading volume surged by 67%, reaching $10.25 billion, one of the month’s busiest trading sessions. Specifically, DOGE trading on Binance saw a 74% increase, with total volume hitting $1.85 billion, indicating traders’ efforts to adjust positions amid a volatile market.

Meanwhile, exchange flows show shifting sentiment. While Binance saw a major DOGE inflow, adding to selling pressure, it also recorded $83 million in outflows. This contrast suggests that some investors move assets to Binance for trading while others pull funds into private wallets due to uncertain market conditions.

Could DOGE’s Price Face Further Decline?

Despite the correction, Dogecoin remains the seventh-largest cryptocurrency, with a market cap of $46.6 billion, highlighting its ongoing importance in the crypto space. However, this status has not shielded it from bearish forecasts. Crypto analysts warn that DOGE’s price may still face further decline.

Analyst Jake Wujastyk suggested that DOGE could experience a flash crash below $0.27. Meanwhile, Rose Premium Signals predicted that DOGE might drop to $0.22 before potentially bouncing back.

“#Dogecoin ($DOGE/USDT) is undergoing a corrective phase, potentially testing the key support at $0.22076. A rebound from this level could lead to targets at $0.40894 and $0.65557, indicating a potential 165% increase,” they tweeted.