Dogecoin (DOGE) is a cryptocurrency that was quite literally created in 2013 as a joke. It was based on a popular internet meme featuring a Shiba Inu dog, a beloved Japanese hunting dog. Despite being created as a joke, DOGE quickly gained a large online following and became a popular form of digital currency, currently sitting at a US$12 billion market capitalisation Quite the valuable joke!
The creators of DOGE never intended for it to become a serious cryptocurrency, but the community that grew around it continued to use it to send money online. Others just aped right in. This community has helped keep DOGE relevant, even as other cryptocurrencies have become more popular.
Elon Musk and DOGE
The most interesting thing about DOGE is the support it gets from world-famous entrepreneur Elon Musk. When he mentions DOGE on social media or in other public forums, it creates buzz and excitement around the cryptocurrency. Even a whisper of DOGE can lead to an increase in its price, as more people become interested in buying it.
It’s worth noting that the price of DOGE is highly volatile and can be influenced by a wide range of factors. While Elon Musk’s comments may have an impact on the price in the short term, it’s difficult to predict how his enthusiasm will affect the price in the long term.
The main reason people are watching Elon Musk and his comments about any cryptocurrency appears to be due to Musk’s new position as Twitter overlord. Musk has made it very clear that he wants to make Twitter an all-in-one app where people can buy things inside it, and let people pay each other inside it, much like WeChat does in China.
So with all this in mind, let’s look at what DOGE whales are doing!
To be a DOGE whale, ideally, you have to hold US$1 million worth of DOGE.
There are four whale moves that happened last night that are worth pondering over.
So there are four whale moves, where they moved DOGE from four different wallets onto an exchange. There are a few reasons as to why this may be the case.
One reason is to sell their DOGE for other cryptocurrencies or for fiat currency, such as US dollars. This could be done if the DOGE whales believe that the price of DOGE is going to decrease, or if they want to invest in a different cryptocurrency. This allows the them to diversify their cryptocurrency portfolio and potentially earn a profit from the trades.
Moving DOGE from a wallet to an exchange could also make the DOGE more easily accessible for buying goods and services. Some online merchants and businesses accept DOGE as payment, so moving it to an exchange could make it easier to use for these transactions.
However in these amounts, adding up to over US$50 million, that doesn’t seem to make sense unless there is a castle for sale somewhere that will accept DOGE as payment!
Four whales move at once
These four moves all at the same time in similar amounts, however make it seem like it is one singular whale moving to sell all holdings, or an exchange moving funds around, perhaps to prove reserves.
It’s hard to know, but if it is a singular whale, getting ready to sell, they may believe that the DOGE price will fall soon. Or perhaps they know something that we don’t.
The act of selling a large amount of a cryptocurrency can create uncertainty and fear among other investors. This can lead to a decrease in demand for the cryptocurrency, further driving down the price. Even this move to show intent to sell can move the price, even if the whale doesn’t sell.
There is no sure way to know if the price of a cryptocurrency is going to fall. The price of cryptocurrencies is highly volatile and can be influenced by a wide range of factors, such as market demand, news, and regulatory developments.
Additionally, if there is negative news or developments surrounding the cryptocurrency, such as a hack or a regulatory crackdown, this could also lead to a decrease in the price. The point is that there are plenty of variables to take into account.
Of late, this doesn’t seem to be the case for DOGE, however there has been some volatility in price.
It’s always important to remember that predicting the price of cryptocurrencies is highly speculative, and even the most experienced traders can’t always accurately predict price movements. These whale moves may mean something or nothing at all.
But let’s all remember just how fun whale watching is, in both real life, and it cryptocurrency markets. Ahoy!