Dogecoin Faces Setback as musk Clarifies US Government Stance
Dogecoin (DOGE) has seen a 10% dip in the past week. This decline follows Elon Musk’s statement that the US government has no plans for the meme coin. Traders were initially hopeful when Musk’s department was named the Department of Government Efficiency, sparking speculation about DOGE’s potential inclusion.
Musk, known for his support of Dogecoin, clarified during a Wisconsin town hall that there are no plans for the government to use DOGE. He explained that the department’s name was a coincidence and unrelated to the meme coin. This revelation disappointed many traders who had hoped for DOGE’s acceptance as a payment method.
Despite the setback, some traders remain optimistic. Derivatives traders on platforms like Binance and OKX are betting on a price increase. The long/short ratio is at 3, indicating bullish sentiment. Options volume has surged by 181.45% in the last 24 hours.
Technical analysis suggests potential gains for DOGE. The price could rise 35% to $0.24040, according to the Fair Value Gap on the DOGE/USDT daily chart. key indicators like RSI and MACD support this bullish outlook. However,a market-wide correction could send DOGE back to its March 11 low of $0.14280.
Traders holding between 1 million and 10 million DOGE added 220 million tokens in March. If this trend continues, it could fuel a bullish run. With Musk stepping back, the future of DOGE remains uncertain. However, its status as a blue-chip meme coin with a $26 billion market cap may help it maintain relevance.
The progress of the dogecoin ETF filing is a positive sign that could support DOGE’s price. Traders should stay informed and monitor market conditions.
