Dogecoin News Today: Dogecoin Whales Buy 1 Billion Tokens in One Day Triggering $3M Short Liquidation

Large whale activity has recently stirred the Dogecoin (DOGE) market scene, drawing attention to unusual transactions and movements that hint at a potential shift in sentiment and accumulation behavior. Following a series of notable transfers attributed to large holders, traders and analysts have speculated about the implications for the meme coin’s short-term trajectory. These movements, often seen as signals of strategic positioning, have historically been linked to price volatility and increased investor interest in the Dogecoin ecosystem [1].

Dogecoin recently experienced a significant market event when whale investors acquired 1 billion DOGE in a single day, triggering a $3 million liquidation of short positions. This event occurred alongside a price drop to $0.2009, marking a 10% weekly loss and a breakdown through key moving averages. Analysts have noted the potential liquidity challenges arising from aggressive buying, with Ali Martinez highlighting the influence of such moves on spot and derivatives traders [1].

The whale purchases marked an unprecedented single-day entry since late 2024. Despite a notable rise in trading volume to $4.82 billion, data from CoinGlass reveals a decline in open positions, indicating eased leverage concerns. A short-squeeze event at $0.208 led to $3 million in liquidations, temporarily weakening sell orders and possibly facilitating upward price pressure. However, accumulated sell orders at $0.208 and $0.228 continue to present resistance, suggesting that without sustained whale purchasing, profit-taking could trigger another price correction [1].

Technical indicators further suggest a shift in market sentiment. A broadening wedge pattern appears on the weekly chart, historically associated with price fluctuations between $0.22 and $0.48, as noted by analyst Tardigrade. The Relative Strength Index has dipped to 44.7, approaching oversold territory, while the MACD’s negative crossover and a stable Chaikin Money Flow at -0.01 indicate reduced capital outflows. These signals collectively suggest diminished selling pressure, though a clear directional bias remains absent [1].

Whale activity has injected liquidity into the Dogecoin market, yet lingering sell orders and mixed technical indicators highlight the uncertainty in the coin’s path. While short-term excitement has been generated, market participants remain cautious about future price movements. Accumulation patterns in Dogecoin echo similar trends in the XRP market, where whale activity has also been reported in recent weeks. This parallel suggests that both retail and institutional investors are increasingly viewing such assets as strategic positions amid broader market volatility [3].

Despite the growing attention, analysts caution that whale movements are not definitive predictors of market direction. The crypto market remains highly speculative, with sentiment often driven by macroeconomic factors, regulatory developments, and social media trends. The recent on-chain behavior in Dogecoin and other major assets, however, indicates a shift in capital allocation strategies, with investors positioning for potential upside in both well-established and emerging digital assets [1].

Source:

[1] https://www.instagram.com/cryptopolitan.official/?hl=en

[2] https://www.bitcoininsider.org/article/281528/fluid-price-rallies-fluid-dex-dominates-stablecoin-swaps-across-ethereum-and-l2s

[3] https://www.tiktok.com/@aetherxrp1/video/7534862429340077367?lang=zh-Hant-TW