Despite a significant price drop in Dogecoin last month, large investors continue to acquire this cryptocurrency, potentially signaling their confidence in future price gains.
Massive Whale Buys Last Month
Throughout March, Dogecoin exhibited increased volatility, with its price ranging from $0.14 to nearly $0.25. Currently, it trades around $0.17, representing a 25% decline over the month. Despite this, large investors, or whales, increased their holdings. According to Ali Martinez, these investors concluded the month with net purchases of over 220 million DOGE, equivalent to more than $37 million at current rates. Whales now own approximately 10.52 billion tokens, constituting roughly 7% of Dogecoin’s circulating supply.
Elon Musk’s Recent Comments
Elon Musk's recent comments have dampened enthusiasm around Dogecoin. Several months ago, Musk was appointed to lead the newly established Department of Government Efficiency (D.O.G.E.), and the crypto community had expected some form of endorsement. However, Musk stated that the US government has no plans to use Dogecoin in any form. 'They happen to be similar names, but really, we’re literally just trying to make the government 15% more efficient,' he added.
Possible Catalysts for Dogecoin Growth
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 Dogecoin ETF in the United States. Grayscale, Bitwise, and Osprey Funds are among the firms that have submitted applications to launch such a product. The chances of approval before the year ends are currently projected to be just below 70%.
Large investors continue to see potential in Dogecoin's growth, despite Elon Musk's comments and current market conditions. Further developments may clarify the future of this cryptocurrency.
