- The Securities and Exchange Commission targeted Robinhood on May 4, 2024.
- Crypto whale cashes out 164M DOGE as Robinhood’s series of outflows increase.
- Dogecoin fell below the important support level of $0.15 despite increased trading volume.
Robinhood, a leading U.S. cryptocurrency exchange, recently received a Wells Notice from the Securities and Exchange Commission (SEC). The SEC’s action on May 4 sparked complaints. That’s because the notice included an advisory to the Commission to file enforcement action against Robinhood for allegedly violating several securities laws.
164 Million DOGE Exited From Problematic Exchange
Meanwhile, large cryptocurrency investors took this as a warning sign and began withdrawing money from the popular California-based exchange. Interestingly, Dogecoin (DOGE), the leading dog memecoin, got caught up in this vortex due to millions of dollars worth of DOGE withdrawals from the platform. One giant DOGE whale cashed out 164 million DOGE a few hours ago, converting it into $25 million by the end of trading hours.
Following this incident, DOGE fell 5.8% in the last 24 hours. However, it is difficult to attribute the recent price drop to the Robinhood outflow, as moving cryptocurrencies from exchanges to self-managed wallets is generally advantageous for the cryptocurrency in question.
Dogecoin has also shown a very high price correlation with Bitcoin (BTC) because both Dogecoin and Bitcoin operate on the same proof-of-work (PoW) consensus. They are the only two cryptocurrencies included in the top 10 by global market capitalization with such a mechanism.
Dogecoin’s decline: teetering on the brink of new heights?
DOGE faces serious obstacles on the road to its $0.20 price target. It fell below the $0.15 support level and was at risk of falling into a relatively smaller support bubble. The price range between $0.146 and $0.162 has a volume of 9.33 billion DOGE from 229.61K cryptocurrency addresses.
On-chain data from IntoTheBlock shows that the narrower price range between $0.143 and $0.146 hosts 50.23K cryptocurrency addresses with a total trading volume of 2.77B. A retracement of Dogecoin at this price level could send DOGE down for a stronger support cluster.
According to experienced cryptocurrency trader The DOGE Coach, considering the weekly close above $0.162, the potential for Dogecoin to restore the $0.17 price range in the middle of its long-term target of $0.20 is enormous. At press time, DOGE had fallen 5.8% over the past 24 hours to trade at $0.1488, reducing its weekly gain to 20%.
Wednesday’s cryptocurrency market decline did not put additional selling pressure on the top dog coin, as bids for Dogecoin were more than $14 million higher than asked. Additionally, the relative strength index (RSI) of the meme coin is relatively neutral at 47, suggesting that a new wave of new DOGE holders is likely.
On the flip side
- While Dogecoin’s trading volume in the spot market has surpassed $1 billion in the last 24 hours, a massive plunge in activity in the derivatives market has contributed to DOGE’s price decline on Wednesday.
Why This Matters
Dogecoin is a long-term TOP 10 contender by global market capitalization and largest proof-of-work (PoW) blockchain, excluding King Crypto Bitcoin (BTC).
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