Over the past week, Dogecoin [DOGE] has witnessed a favorable trajectory, surpassing crucial price levels. Nevertheless, as the value escalated significantly, a substantial amount of DOGE was moved to an exchange, hinting at a possible sale.
Observing the Dogecoin Sell-Off
On 20th October, Whale Alert data unveiled a massive DOGE transfer to the Binance exchange. A sum exceeding 176 million DOGE, worth over $25 million, was shifted, indicating a noteworthy sell-off occurrence.
The wallet engaged in the transaction still retains over 10 million DOGE, equivalent to roughly $1.6 million. This transfer occurred post a surge in Dogecoin’s value, prompting assumptions that holders might be cashing out post the price hike.
Recovery of Dogecoin Post the Sell-Off
Despite the sell-off incident, Dogecoin has exhibited resilience. Examination of the price chart disclosed a momentary downturn due to selling pressure in the latest trading session. Trading volume recorded a significant spike to about $333 million, affirming a temporary prevalence of trader sell-offs.
DOGE experienced a minor 1.4% drop, hovering at approximately $0.142 momentarily.
However, at the current juncture, Dogecoin has bounced back, restoring its momentum. The price surge surpasses 4%, presently trading near $0.148. Analysis of the Relative Strength Index (RSI) indicates that DOGE remains in the overbought territory, signaling sustained demand.
Moreover, the $0.130 price threshold has now evolved as the latest support level, a value previously observed in June before the token briefly fell below it in subsequent sessions.
Increased Interest Yet Cautionary Signals Emerge
As per Glassnode statistics, the recent sell-off demonstrated temporary trends, with a substantial growth in open interest in recent days. At present, Dogecoin’s open interest totals around $940 million, surging from $760 million on 18th October, illustrating an influx of nearly $200 million in a mere two days.
While the elevation in open interest underscores revived trader engagement and positive cash inflows, the existing state of Dogecoin’s RSI advocates for prudence.
Given the continued indication of an overbought condition by the RSI, potential cues suggest an impending price adjustment.
Overall, Dogecoin remains sturdy post the recent sell-off; however, traders should exercise caution regarding probable corrections in the ensuing days.