TL;DR

Despite a 25% monthly price drop, large investors bought over $37M worth of DOGE, which suggests that they could be building their positions for potential upcoming gains. However, hopes for a boost from Elon Musk faded after he clarified that the Department of Government Efficiency (D.O.G.E.) has no plans to adopt the meme coin.

Massive Whale Buys Last Month

The biggest meme coin in terms of total market capitalization witnessed enhanced volatility throughout March, with its price ranging from $0.14 to almost $0.25. Currently, it trades at around $0.17, representing a 25% decline on a 30-day scale.

DOGE Price, Source: CoinGecko Whales seem unfazed by this turbulence, and they increased their holdings during that timeframe. The X user Ali Martinez revealed that these investors ended the month with net purchases of over 220 million DOGE, which equals more than $37 million (calculated at current rates). 

He pointed out that whales now own approximately 10.52 billion tokens, constituting roughly 7% of Dogecoins circulating supply. 

When such large investors buy substantial amounts of DOGE, they effectively decrease the available number of tokens on the open market. If demand remains constant or increases, this reduction can lead to upward pressure on the price. ​

Such actions can also be interpreted as a signal of confidence in the assets future performance, which could encourage additional buying from retail investors, further driving up the valuation. 

Musks Recent Comments

Elon Musks entry into the US political scene several months ago triggered huge enthusiasm among DOGE proponents. Teslas CEO was appointed to lead the newly established Department of Government Efficiency (D.O.G.E.). 

The division has the same abbreviation as the popular meme coin, while the billionaire is known as a firm supporter of the latter. 

And while the crypto community expected some kind of endorsement, Musks recent comments poured cold water on such hopes. He said the US government has no plans to use DOGE in any form.

They happen to be similar names, but really, were literally just trying to make the government 15% more efficient, he added.

That said, bulls will have to wait for other catalysts that could push the price up in the near future. One example is the potential approval of a spot DOGE ETF in America. Grayscale, Bitwise, and Osprey Funds are some of the firms that have submitted applications to launch this type of product. The chances of a green light before the end of the year are currently projected to be just below 70%.