Dogecoin’s price took a sharp hit after a major whale dumped 119 million tokens on Robinhood, raising concerns among investors, even as Tesla and Elon Musk continue supporting the meme coin.

DOGE Whales Dump 119M Tokens

Despite all the positive talk, DOGE whales have started selling off their holdings, which is causing investors to worry. Over the previous day, the price of DOGE has plummeted by little more than 4%.

A staggering 119.67 million DOGE was sent from an anonymous wallet address (DUU1Ru..) to Robinhood, as disclosed on September 4th by Whale Alert. The significant lack of faith in the asset was highlighted by this enormous whale dump, which was worth $11.70 million.

On-Chain Activity Slows Sharply

In addition, a report citing IntoTheBlock statistics showed that on-chain activity has been drastically reduced since the beginning of September by those owning at least 0.1% of the meme coin's circulating supply. The daily inflows dropped from 229.49 million DOGE to 27.96 million DOGE as September got underway, just to give you an idea. In addition, there was a notable increase of 80.7% in outflows.

In sum, new on-chain data has shown that large-scale investors are losing faith in the asset. Unfortunately, this has led many in the cryptocurrency sector to express pessimism about Dogecoin's prospects.

Musk Confirms Tesla Accepts DOGE

At the same time, according to Coingape, it's important to remember that the coin has had a sluggish uptake, even though Elon Musk has just confirmed that DOGE can be used to pay for Tesla items.

Additionally, Elon Musk and Tesla were found not guilty of dogecoin manipulation this week by U.S. District Judge Alvin Hellerstein. The famous meme token with a dog motif has not seen any price increases despite these reliefs.

Following today's general market trend, the price of DOGE fell 3% and is now sitting at $0.0963. Throughout the course of the day, the price of the coin fluctuated between $0.09298 and $0.1005. Dogecoin pricing has been trending downward on the weekly chart.

Dogecoin Faces Market Uncertainty

Concerning this, the token's slow trading, despite favorable developments in the industry as a whole, has caused market uncertainty regarding its future price movement. Furthermore, investor anxiety was heightened today as the value of the coin's futures OI fell 3.5 percent to $446.31 million.

Today, Dogecoin was under considerable downward pressure, as the asset's Relative Strength Index (RSI) was at 40.