- Elon Musk dismisses government plans to use Dogecoin, dampening recent speculations and hype
- Dogecoin dropped 8% in a week, with bearish trends and low buying pressure impacting prices
Elon Musk’s influence on Dogecoin [DOGE] is no secret- one tweet from the billionaire, and the memecoin’s value can skyrocket or even plummet in minutes.
But this time, it’s not a cryptic meme or a playful nod to DOGE. Musk, who is known to influence President Donald Trump, has explicitly stated that the government has no plans to adopt Dogecoin.
This statement has dampened speculation about the memecoin gaining official traction. Over the past week, Dogecoin’s value has dropped by 8%.
Is this the end of the Musk effect or just another twist in Dogecoin’s unpredictable journey?
Dogecoin is not part of Musk’s government efficiency agenda
Musk has set the record straight: there are no government plans to adopt DOGE, despite swirling speculation linking the memecoin to his new government initiative, the Department of Government Efficiency (also called DOGE).
Speaking at an America PAC town hall in Green Bay, Wisconsin, Musk clarified the situation, saying,
“There are no plans for the government to use Dogecoin or anything, as far as I know.”
The confusion stems from the department’s playful acronym, which mirrors the popular crypto asset that Musk has championed in the past. Originally, Musk intended to name the initiative the “Government Efficiency Commission” but pivoted after feedback, saying,
“I was going to call it the Government Efficiency Commission, but that’s a super boring name.”
Contrary to speculation, DOGE’s sole purpose is to increase government operational efficiency by 15% – not to integrate the memecoin into federal use.
A love story for the ages
Musk’s long-standing association with DOGE has had a significant impact on its value over time. In December 2020, his tweet, “One Word: Doge,” triggered a 20% surge in price.
By April 2021, his statement that SpaceX would “put a literal Dogecoin on the moon” propelled DOGE to an all-time high of $0.73.
Not all Musk-related events were bullish, though. During his SNL appearance in May 2021, he referred to Dogecoin as “a hustle,” causing a 30% drop in its value. Despite this, his support remained evident when Tesla began accepting Dogecoin for select merchandise in January 2022.
DOGE: Price outlook
Source: Coinmarketcap
Dogecoin has faced a significant pullback over the past week, dropping 8%.
At press time, DOGE was trading at approximately $0.162, reflecting bearish sentiment in the market.
Technical indicators showed weakness, with the RSI at 38.34, indicating that Dogecoin is nearing oversold territory. OBV remained subdued at 45.41 billion, reflecting decreased buying pressure.
Source: TradingView
The overall trend remains bearish, with lower highs and lower lows forming on the daily chart. $0.16 is a key support level, as a break below it could trigger further downside momentum.
Musk’s recent comments may have contributed to Dogecoin’s 5% price drop in the past 24 hours. As a result, the short-term outlook for Dogecoin’s price remains uncertain.
