Robinhood Sees Massive Dogecoin Outflows After Wells Notice

• The Securities and Exchange Commission targeted Robinhood on May 4, 2024.
• Crypto whales cash out 164M DOGE as Robinhood’s outflow streak escalates.
• Dogecoin slips below critical support at $0.15 despite rising trading volumes.

Robinhood, a leading American crypto exchange, recently received a Wells Notice from the Securities and Exchange Commission (SEC). On May 4, the SEC’s move was met with discontentment, as this notice included advice to the commission to file for enforcement action due to Robinhood allegedly breaching multiple securities laws.

164M DOGE Pulled Out Of Troubled Exchange

Meanwhile, large cryptocurrency investors took it as a warning sign and started withdrawing money from the popular California-based exchange. Intriguingly, the top dog memecoin Dogecoin ( DOGE ) got caught up in this whirlpool with multiple multi-million DOGE withdrawals from the platform. One huge DOGE whale cashed out 164 million DOGE a few hours ago, converting to $25 million at stamped transaction time.

Following the events, DOGE plunged by 5.8% over the past 24 hours. However, the latest price decline can hardly be attributed to the outflows on Robinhood, as moving a cryptocurrency from an exchange to a self-custodial wallet is usually favorable for the cryptocurrency in question.

In addition, Dogecoin has been exhibiting a very high price correlation with Bitcoin (BTC), as both Dogecoin and Bitcoin operate on the same Proof of Work (PoW) consensus. They are the only two cryptocurrencies in the TOP 10 by global market capitalization with such a mechanism.

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Dogecoin’s Dip: Shake Out Before New Heights?

On the road to the $0.20 price target, DOGE is facing a serious obstacle. It dropped below the $0.15 support level and risked falling into a relatively smaller support bubble. The price range between $0.146 and $0.162 has a volume of 9.33B DOGE at 229.61K cryptocurrency addresses.

IntoTheBlock’s on-chain data suggest that the narrower price range between $0.143 to $0.146 has 50.23K crypto addresses holding a total volume of 2.77 billion. Dogecoin backtracking to this price range could send DOGE below for a stronger support cluster.

According to experienced cryptocurrency trader The DOGE Coach, Dogecoin’s potential to restore the $0.17 price range midway to the long-term goal of $0.20 is huge, given that the weekly close is above $0.162. As of press time, DOGE trades at $0.1488, with a 5.8% drop over the past 24 hours, slimming the weekly rise to 20%.

Wednesday’s crypto market pullback didn’t put extra sell pressure on the top dog coin, as bids for Dogecoin outweigh the asks by over $14 million. Additionally, the meme coin’s Relative Strength Index (RSI) remains relatively neutral at 47, hinting that a fresh tide of new DOGE holders is likely.

On the Flipside

• While Dogecoin’s trading volume on Spot markets has topped $1 billion over the latest 24-hour timeframe, the massive activity plunge on Derivatives markets has contributed towards DOGE’s price losing steam on Wednesday.

Why This Matters

Dogecoin is a long-term TOP 10 contender by global market capitalization and the largest Proof of Work (PoW) blockchain, aside from the King Crypto Bitcoin (BTC).

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