Despite a 25% monthly price drop, large investors purchased over $37 million worth of DOGE in March, suggesting potential position building for future gains. However, hopes for a price boost fueled by Elon Musk diminished after he clarified that the Department of Government Efficiency (D.O.G.E.) has no plans to adopt the meme coin.

Massive Whale Purchases in March

Dogecoin, the leading meme coin by market capitalization, experienced significant price volatility in March, fluctuating between $0.14 and nearly $0.25. Currently trading around $0.17, it reflects a 25% decrease over the past 30 days.

DOGE Price (Source: CoinGecko)

Despite this volatility, large investors, known as whales, increased their holdings. X user Ali Martinez reported net purchases exceeding 220 million DOGE, equivalent to over $37 million (at current rates). These whales now hold approximately 10.52 billion DOGE tokens, representing roughly 7% of the circulating supply. Such substantial purchases reduce the available supply on the open market, potentially creating upward price pressure if demand remains steady or increases. This action can also signal investor confidence, potentially encouraging further buying from retail investors.

Musk's Recent Clarifications

Elon Musk's involvement in US politics several months ago generated significant excitement among DOGE supporters following his appointment to lead the newly formed Department of Government Efficiency (D.O.G.E.). The department's abbreviation mirrors that of the cryptocurrency, and Musk's known support for DOGE fueled speculation. However, Musk recently dispelled hopes of any official endorsement, stating the government has no plans to utilize DOGE. He clarified, "They happen to be similar names, but really, we’re literally just trying to make the government 15% more efficient."

Future price increases will depend on other catalysts. One possibility is the approval of a spot DOGE ETF in the US. Grayscale, Bitwise, and Osprey Funds have submitted applications, with the probability of approval before year-end estimated at just under 70%.