Markets
Dogecoin, Shiba Inu Markets See Volatility: Are Whales to blame?
- SHIB and DOGE prices surge before rapid corrections.
- The data indicates increased market volatility for both memecoins.
Dogecoin [DOGE] AND Shiba Inu Dog [SHIB] have seen an increase in the rate of large transactions lately. Whale Alert data indicated a transfer of 400,000,000 DOGE-worthy $50 million from Robinhood to an unknown wallet, DEgDV…Mke.
Source: Whale Alert
Similarly, the same wallet transferred $2.7 billion in SHIB, worth $48.3 million, from Robinhood to an unknown wallet on the Ethereum blockchain.
Source: Whale Alert
What future for Shiba Inu and DOGE?
At the time of the whale transaction, SHIB was trading at $0.00001703. Prices skyrocketed after the transaction.
At its peak, the Shiba Inu reached a high of 0.00002018, which represents a significant increase of 6.73%. However, this surge was short-lived, as the price quickly corrected to 0.00001775.
Similarly, DOGE shows a similar pattern of volatility and price movements.
In fact, Dogecoin was trading at $0.11797 before a significant price jump of 9.98% pushed it to $0.12958 after the whale transaction.
Source: TradingView
The Dogecoin blockchain has seen multiple transfers totaling 528,775,728 DOGE, with a complex pattern of inflows and outflows.
Specifically, 400 million DOGE was sent to an external address, while 128.7 million DOGE was returned to the Robinhood address. This circular flow of funds suggests a possible strategic repositioning or liquidity management by large holders.
According to DOGE Liquidation Map data analyzed by AMBCrypto, there is a vivid market reaction to these whale transactions. There was a spike in DOGE liquidations when the price approached the 0.1266 level, with both long and short positions suffering.
It is worth noting that this event highlights the high-risk nature of leveraged trading in the volatile cryptocurrency market.
Source: Coinglass
Light Dogecoin [DOGE] Price forecast 2024-25
To complete the above-mentioned liquidation, we took a deeper dive into the Shiba Inu long-short ratio data to determine its market propensity.
The ratio stood at 0.82, with 55.03% of investors in long positions. This fluctuation does not provide a clear market bias for Shiba Inu.
Source: Coinglass