Will Dogecoin Price Crash Continue Amid Whale Dumping?

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  • A Dogecoin whale dumped 200M DOGE worth $49.94M on Binance, triggering market concerns.
  • DOGE price plummeted 19% to $0.247, hitting an intraday low of $0.2117 amid a market crash.
  • Trump’s new tariffs led to a broader crypto market slump, intensifying DOGE’s sell-off.

Dogecoin price continues to be under selling pressure, especially from its large holders. The broader market of cryptocurrencies has also not been spared by volatility owing to the general economic conditions. These factors have caused uncertainty about the short-term trend of the digital asset.

Major Whale Transaction Raises Market Concerns

On February 3, 2025, Binance executed a 200 million DOGE transaction valued at $49.94 Million for a Dogecoin whale.

Major holders who transfer substantial holdings of their assets alter market dynamics thus causing market volatility together with price changes.

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source: x

Consequently, the Dogecoin price experienced a notable decline after the transfer took place.

During that trading day, Dogecoin declined 19% to achieve its day-high price of $0.247 which dropped further to reach its daily low of $0.2117.

The price decline followed other market fluctuations that emerged throughout this time frame.

Crypto analyst, Ali Martinez, analyzed whale activity during the past day and it revealed that Dogecoin whales sold 270 million DOGE.

Market volatility and bearish sentiment extend from the massive DOGE selling figures that Santiment data depicts.

Dogecoin price
Source: X

Impact of Recent Tariff Announcements on the Crypto Market

More so, President Donald Trump’s recent tariff implementation caused substantial changes across global financial markets which directly affected the cryptocurrency industry.

President Trump’s administration introduced 25% import tariffs targeting Canada and Mexico and tariffs toward Chinese products. Such actions triggered broad market losses across different investment categories.

Most cryptocurrency assets suffered market declines in this current period. The value of Bitcoin experienced a 2.5% decline to reach $95,344 and XRP lost 9.7% to stand at $2.35. Dogecoin price dropped by 7.9% to fall below the $0.25 level.

The price movements demonstrate how digital assets show strong reactions to government policy and worldwide events.

Dogecoin Price Reaction and Future Outlook

Hence, the implementation of these new tariffs caused corresponding actions from the nations affected.

Canada and Mexico announced their plans to take retaliatory action along with China stating its future move to complain to the World Trade Organization.

These new trade policies create market uncertainty that could significantly alter market behavior.

Source: TradingView

Meanwhile, the MACD indicator on Dogecoin 4-hour chart shows a bearish trend, with the MACD line (-0.01375) positioned below the signal line (-0.00635), confirming downward momentum.

Additionally, the histogram is negative, further indicating selling pressure. These signals align with the recent price decline, suggesting continued bearish sentiment.

Disclaimer

This article is for informational purposes only and provides no financial, investment, or other advice. The author or any people mentioned in this article are not responsible for any financial loss that may occur from investing in or trading. Please do your research before making any financial decisions.

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