Elon Musk Strikes Again ! Why Is Dogecoin Dropping ?

Dogecoin Falling : Is Elon Musk Moving Away from the Project ?

Dogecoin (DOGE) traders were shocked by Elon Musk’s announcement that the US government had no plans to use DOGE. Tesla’s CEO had recently been appointed to lead the “Department of Government Efficiency.” As a result, many DOGE holders were hopeful that the memecoin would be integrated into future projects of this new entity.

Musk is known for his affinity with Dogecoin and the legal issues he has faced due to his statements influencing DOGE’s price. However, he clearly stated that the memecoin does not fit into the federal government’s plans.

During a public meeting in Wisconsin, he said, “To my knowledge, there are no plans for the government to use Dogecoin for anything… The names sound alike, but they do very different things.”

What’s Next for Dogecoin after this Setback ?

The chart of daily Dogecoin prices shows that the memecoin could gain up to 35% and test a resistance at $0.24040. This would be the upper limit of a fair value gap on the daily DOGE/USDT chart. The lower limit of this gap, at $0.21465, poses a hurdle on the way to $0.24040, representing over 20% gains.

Source: TradingView

Two key technical indicators, the RSI and the MACD, support a bullish thesis for Dogecoin. The RSI is at 46 and trending upwards, while the MACD shows green bars above the neutral line. These elements indicate a positive momentum underlying DOGE’s price trend.

However, if Dogecoin fails to sustain trader demand, the altcoin could slide down to its low of March 11 and test support at $0.14280. A sudden drop in Bitcoin (BTC) could lead to a sharp price correction in cryptocurrencies, bringing DOGE back to this level.

The excitement around Dogecoin took a hit with Elon Musk’s clarification on the lack of future plans for the use of DOGE by the federal government or the Department of Government Efficiency. While the sentiment of DOGE traders remains above the 30-day moving average, it could decline in case of a widespread market correction.

Elon Musk Moving Away from DOGE… Only to Return Stronger ?

Musk has gained significant popularity in the crypto community as the “Dogefather.” As he distances himself from DOGE and the Department of Government Efficiency, it remains to be seen if the memecoin can maintain its relevance.

Dogecoin has emerged as one of the leading memecoins, with a market capitalization exceeding $26 billion. If it can digest this development and sustain investor demand, DOGE could retain its significance. It would continue to find use cases, especially with the progress of the Dogecoin ETF project.

If you are considering buying Dogecoin (DOGE), the platform WEEX allows you to do so with ease.

1. Create a WEEX account by signing up in a few minutes.
2. Deposit funds via credit card, bank transfer, or crypto transfer.
3. Access the market and search for the DOGE/USDT pair.
4. Complete the purchase and find the DOGE tokens in your account.

Prior to any investment, it is always recommended to stay informed about the market’s condition and the risks involved. Above all, never invest more than you can afford to lose.

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