Dogecoin, Shiba Inu markets see volatility – Are whales the reason?

• SHIB and DOGE prices spike before quick corrections.
• Metrics indicate increased market volatility for both memecoins.

Dogecoin [DOGE] and Shiba Inu [SHIB] have witnessed an increased rate of large transactions of late. 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 SHIB worth $48.3 million from Robinhood to an unknown wallet on the Ethereum blockchain.

Source: Whale alert

What next for Shiba Inu and DOGE

At the time of the whale transaction, SHIB was trading at $0.00001703. The prices soared massively after the transaction.

At its peak, Shiba Inu reached a high of 0.00002018, representing a significant 6.73% increase. However, this surge was short-lived, as the price quickly corrected to 0.00001775.  

Similarly, DOGE displays a similar pattern of volatility and price movements.

In fact, Dogecoin was trading at $0.11797 before a significant price jump of 9.98% propelled it to $0.12958 after the whale transaction.

Source: TradingView

The Dogecoin blockchain saw multiple transfers totaling 528,775,728 DOGE, with a complex pattern of inflows and outflows. 

Notably, 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 possible strategic repositioning or liquidity management by large holders.

According to the DOGE Liquidation Map data analysed by AMBCrypto, there is a vivid market reaction to these whale transactions. A spike in DOGE liquidations occurred as the price approached the 0.1266 mark, with both long and short positions feeling the impact.

It is worthy of note that, this event underscores the high-stakes nature of leveraged trading in the volatile crypto market.

Source: Coinglass

Read Dogecoin’s [DOGE] Price Prediction 2024-25

To add to the aforementioned liquidation, we dove deeper into the Shiba Inu long-short ratio data to determine its market bias.

The ratio stood at 0.82, with 55.03% of the investors in long positions. This fluctuation does not give a clear market bias for Shiba Inu.

Source: Coinglass