Dogecoin (DOGE) whales have started offloading their holdings as September begins, casting doubts on the token’s chances of reaching the much-anticipated $1 mark. Despite recent excitement generated by Elon Musk’s hint about enabling Dogecoin payments for Tesla merchandise, the token's price has slipped over 4% in the past 24 hours, sparking concerns among investors.
Dogecoin Whales Reduce Holdings, Raising Alarms
On September 4, Whale Alert reported a significant transaction involving 119.67 million DOGE, worth approximately $11.70 million, being moved from an unknown wallet to Robinhood. This large-scale sell-off by a prominent whale has fueled speculation of waning confidence in Dogecoin among major holders.
Further data from IntoTheBlock revealed a sharp decline in on-chain activity from wallets holding at least 0.1% of the token's circulating supply. Since the beginning of September, daily inflows have plummeted from 229.49 million to just 27.96 million DOGE, while outflows surged by 80.7%. This shift indicates that large investors are pulling back, leading to a bearish outlook for Dogecoin in the near term.
Price Slips Despite Musk’s Support
Even though Musk recently confirmed that Tesla will accept Dogecoin for merchandise, DOGE has seen limited price momentum. On top of that, a U.S. District Judge dismissed the Dogecoin manipulation case against Musk and Tesla, removing another cloud over the token. Despite these developments, DOGE has not experienced any significant gains.
Currently, Dogecoin is trading at $0.0963 after a 3% dip in the last 24 hours, with an intraday range of $0.09298 to $0.1005. The token has also seen sluggish performance on the weekly chart, showing signs of a broader pullback.
Adding to the bearish sentiment, the coin’s futures open interest (OI) dropped by 3.5% to $446.31 million, reflecting growing investor caution. Dogecoin’s Relative Strength Index (RSI) sits at 40, signaling downside pressure on the asset.
Will DOGE Reach $1 This Year?
Despite bullish news around Musk’s endorsement, the market sentiment surrounding Dogecoin remains cautious. The token’s recent dip in price and futures OI has led to uncertainty over its potential rally to $1 this year. While a surge in interest could change the outlook, current market conditions appear bearish. Nevertheless, due to the highly volatile nature of the cryptocurrency market, traders are closely watching for any shifts in Dogecoin’s price trajectory.
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