Whale Alert, a blockchain monitoring service, reported an investor who transferred 100,000,000 Dogecoins (DOGE) to an unidentified wallet from Robinhood’s trading platform. The coins were worth approximately $15.25million at the time this transaction took place, leading to speculation that the price of cryptocurrency could increase.
Robinhood allows the conversion of cryptocurrency into fiat currency. Typically, the deposit made on the platform is associated with the intention to sell. The transfer to the wallet that is not connected to an exchange suggests the investor intends to keep the cryptocurrency. These transfers can often lead to a price increase or stability of cryptocurrencies on the market.
In the past, prices of meme coins like Dogecoin have soared to astronomical values months after halving.
Dogecoin’s future is still uncertain as the coin anticipates the post-Bitcoin halving scenario. Dogecoin and other meme coins have seen significant increases in price over the past few months. After the halves. DOGE is currently trading at $0.1535. This represents a rise of 1.8% in the last 24 hours.
Santiment’s on-chain analysis suggests that this rise in circulation may not last long due to the trends seen within the figures for a single day. Dogecoin circulation was reported at 1.07 billion units, which indicates increased use and decreased removal from the marketplace.
If this indicator continues to rise, the value of DOGE could decrease. The coin’s current velocity, which is 1.49, offers a different perspective.
Dogecoin and Bitcoin: Correlation
High velocity is often indicative of a robust economy, since it indicates that the holders are spending their coins. A decline in the velocity of cryptocurrency trading, as is currently seen with Dogecoin, indicates that holders are hesitant to spend.
Increased circulation may drive DOGE’s price down to $0.15 in the near future. If the velocity is low in the coming months, DOGE could see a price rally, potentially reaching $0.20-$0.25 as targets.
Dogecoin and Bitcoin’s relationship was examined to see if DOGE price movement would align with BTC in the coming weeks. Macroaxis reports that the 90-day coefficient of correlation between Bitcoin and Dogecoin is 0.94. On a scale from -1 to +1, this means there’s no correlation.
![Dogecoin](https://coinfomania.com/wp-content/uploads/dogecoin-correlation-with-bitcoin.png)
Dogecoin, despite this correlation, has performed better than Bitcoin. It would have returned 1.66x the amount of BTC in the last three months, if both were invested with the same money.
This trend could continue in the future. Dogecoin’s value could fall even more if Bitcoin drops. A significant rise in Bitcoin could lead to a rally of Dogecoin similar to the one seen last March.
The absorption of 21.74 billion DOGE could kick-start its uptrend
A recent analysis by IntoTheBlock indicates that Dogecoin’s (DOGE), which is a cryptocurrency, may be nearing a price surge. It could reach its highest ever value. This potential price increase is largely due to the accumulation of 21,74 billion DOGE in a range between $0.1636 and $0.671.
Dogecoin holders are currently losing money due to the large amounts of Dogecoin distributed over 953 590 wallets. This supply concentration can be resolved, which could result in a significant increase of DOGE’s price.
Experts warn, however, that this high volume of DOGE could create selling pressure on the market as it begins to move in its price range. DOGE currently trades at $0.1535 with a high record of $0.74. This indicates significant growth potential.
This volume is a tiny portion of Dogecoin’s total market. Statistic shows that 5,13 million Dogecoin address control 122,75 billion DOGE. This is 81.05%. This widespread ownership is a key factor in the stability of Dogecoin’s cryptocurrency market, but it can also increase selling pressure.
In the midst of these dynamic market conditions, indicators on the chain point towards a new possible price peak for DOGE. Dogecoin enthusiasts are still speculating about the future of its price, and how it will be affected by factors such as investor sentiment or broader market conditions.
Doge Day is tomorrow, 4/20/24! pic.twitter.com/OlYoQnEasl
— Tesla Model Doge (@TeslaModelDoge) 19 April 2024
The informal DOGE Day celebration on the 20th of April could also be a factor in the Dogecoin uptrend. Dogecoin was given a humorously selected date by the crypto-community to celebrate the coin. However, the reasons behind this selection are unclear. Some speculate that the date April 20 has some significance for Elon Musk.
Those who have been following the crypto sector for a long time know that Tesla CEO Elon Musk is an avid supporter of Dogecoin. In the past two years, DOGE’s price has increased several times in conjunction with the date.