TL;DR
- Despite a 25% monthly price drop, large investors bought over $37M worth of DOGE, indicating potential future gains.
- Musk’s recent comments dashed hopes for a boost from the Department of Government Efficiency (D.O.G.E.) adopting DOGE.
Massive Whale Buys Last Month
The biggest meme coin in terms of total market capitalization witnessed enhanced volatility throughout March, with prices ranging from $0.14 to almost $0.25. Currently, it trades at around $0.17, representing a 25% decline on a 30-day scale.
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 Dogecoin’s 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 asset’s future performance, which could encourage additional buying from retail investors, further driving up the valuation.
Musk’s Recent Comments
Elon Musk’s entry into the US political scene several months ago triggered huge enthusiasm among DOGE proponents. Tesla’s 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, Musk’s recent comments poured cold water on such hopes.
“They happen to be similar names, but really, we’re 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%.
Conclusion
In conclusion, despite the 25% monthly price drop, large investors are still showing confidence in DOGE, buying over $37M worth of the asset. However, hopes for a boost from Elon Musk’s Department of Government Efficiency (D.O.G.E.) have been dashed. The future of DOGE remains uncertain, but potential catalysts such as the approval of a spot DOGE ETF in America could still drive up its price.
FAQs
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What is DOGE?
DOGE is a popular meme coin that has gained significant attention in the crypto market.
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What is the current price of DOGE?
The current price of DOGE is around $0.17, representing a 25% decline on a 30-day scale.
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What is the significance of large investors buying DOGE?
Their purchases can lead to upward pressure on the price, as it effectively decreases the available number of tokens on the open market, and can also be seen as a signal of confidence in the asset’s future performance.
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What are the potential catalysts that could push the price of DOGE up in the near future?
Some examples include the potential approval of a spot DOGE ETF in America, as well as other market trends and events that could impact the price of DOGE.
