Dogecoin Whales Trigger Massive Sell-Off: A $5 Billion Wipeout
In recent cryptocurrency news, Dogecoin (DOGE) has been under intense selling pressure as large holders (known as “whales”) significantly reduce their exposure. According to data from Santiment and analysis by Ali Martinez, wallets holding between 10 million and 100 million DOGE offloaded approximately 1 billion coins over the past seven days. This wave of selling led to a sizeable market correction, shaving about $5 billion off the meme coin’s total market capitalization.
Why Are Dogecoin Whales Selling Now?
On-chain metrics suggest that these large-scale sell-offs began in mid-October. The wallet cohort driving the sales is often associated with early adopters and significant market makers. Observers believe the timing coincides with these entities taking profits or positioning for potential broader market volatility.
At the outset of last week, Dogecoin’s market capitalization stood at approximately $30.6 billion. By November 4, that figure had plummeted to $25.1 billion, reflecting a staggering 17% loss in just seven days. DOGE also broke below a key support level of $0.18, exacerbating its descent toward $0.1657—a 4.75% decline in the last 24 hours. This drop outpaced the cryptocurrency market’s broader losses of 3.7% during the same period.
Key Factors Driving Dogecoin’s Price Decline
A perfect storm of market forces contributed to the Dogecoin slump. Here’s what happened:
- Massive liquidations of over $1.36 billion in leveraged crypto positions in a 24-hour window.
- Whale-driven sell-offs combined with short selling.
- A crucial technical breakdown below the $0.18 support level, leading to automated sell-offs.
According to reports, one savvy trader capitalized on the downturn, earning $36 million by shorting DOGE, Ethereum, and other cryptocurrencies.
Retail Investors Step In Amid Increased Volatility
Despite the bearish sentiment, Dogecoin’s trading volume spiked significantly. Daily transactions surged by over 90%, reaching $3.9 billion. This uptick suggests retail investors are attempting to take advantage of the volatility, either by short-term trading or accumulating DOGE at lower price levels.
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The Bigger Picture: Dogecoin’s Future
For now, Dogecoin’s outlook will depend on whether larger market trends stabilize or further volatility prompts additional sell-offs by whales. Retail investors and traders should monitor key support and resistance zones as well as broader crypto market sentiments. While the slump presents challenges, it also offers opportunities for those willing to take calculated risks.
