A major Dogecoin whale has sparked market concerns by transferring nearly 176 million DOGE to a cryptocurrency exchange as the week begins. This significant dump occurred despite Dogecoin’s ongoing price rally, raising investor fears of a potential correction. However, DOGE still managed to outperform Bitcoin with a 4% intraday gain in spite of the massive sell-off. Analysts are now speculating on Dogecoin’s future price trajectory given these recent market developments.

Dogecoin Whale Offloads Massive Amount Amid Price Surge

According to Whale Alert data, a Dogecoin whale address transferred 176.64 million DOGE worth approximately $25 million to Binance on October 20. This large-scale movement of coins to an exchange, potentially signaling an intent to sell, has ignited bearish sentiment around the popular meme cryptocurrency’s short-term prospects.

The dump comes as Dogecoin was already experiencing upward momentum, partially fueled by Elon Musk-related events and U.S. presidential election buzz. Notably, Musk recently made a $75 million donation in relation to Donald Trump’s campaign. While DOGE had been riding bullish waves, the whale’s massive transfer has introduced significant selling pressure and uncertainty around its price action going forward.

Potential Price Correction Ahead for DOGE?

At press time, Dogecoin is trading at $0.1473, up 4% in the last 24 hours. The token hit a daily low of $0.1376 and high of $0.1488. On weekly and monthly timeframes, DOGE has gained 32% and 39% respectively. However, the recent whale activity has made investors wary about sustaining this uptrend.

Adding to the bearish outlook, Coinglass data shows a 0.5% decrease in DOGE futures open interest to $1.06 billion. A recent technical analysis also indicates Dogecoin may be due for a correction after its 30% weekly gain pushed it into overbought territory. The analysis suggests buyers have overextended the recovery trend, with price stretching too far from key moving averages.

Furthermore, crypto analyst Ali Martinez noted that the TD Sequential indicator flashed a sell signal on DOGE’s daily chart over the weekend. This metric further supports the notion that Dogecoin could see a brief pullback before potentially resuming its uptrend.

Taken together, these market signals and on-chain data suggest Dogecoin may be preparing for a price correction in the near term, despite its recent strong performance. Investors will be closely watching how DOGE responds to these conflicting bullish and bearish pressures in the coming days and weeks.