Musk Denies U.S. Plans to Use Dogecoin
Key Takeaways
- Elon Musk clarifies: No U.S. government plans to use Dogecoin.
- Confusion arose due to the new government project “Department of Government Efficiency” (DOGE).
- Dogecoin drops 8% in value over one week, market shows bearish tendencies.
- Technical indicators point to weak demand and potential further price declines.
No Government Plans for Dogecoin
Elon Musk has dismissed rumours about a possible integration of Dogecoin (DOGE) into U.S. government operations. At an event in Green Bay, Wisconsin, Musk stated clearly: “There are no plans to use Dogecoin or anything like that in the government – as far as I know.”
Speculation began after Musk announced the launch of a new government initiative: the “Department of Government Efficiency,” abbreviated as DOGE. The name caused confusion due to its similarity to the well-known cryptocurrency. However, Musk emphasized that the project is solely aimed at improving government efficiency – specifically by 15%. There is no connection to the cryptocurrency.
Dogecoin Under Pressure
Following Musk’s clarification, Dogecoin lost around 5% of its value within 24 hours. Over the past week, the total decline amounted to approximately 8%. At the time of analysis, the price stood at around USD 0.162.
From a technical perspective, the outlook is weak. The Relative Strength Index (RSI) is at 38.34 – a level that may indicate the asset is oversold. The On-Balance Volume (OBV), an indicator of buying pressure, is stagnant at 45.41 billion. The price trend is currently forming a pattern of lower highs and lower lows, suggesting a continuing downtrend.
A critical support level is at USD 0.16. If this area is breached, the downward trend could accelerate.
Musk’s Influence on Dogecoin – A Look Back
Elon Musk has influenced Dogecoin multiple times in the past – often with just a single tweet. In December 2020, his comment “One Word: Doge” led to a 20% price jump. In April 2021, he announced plans to send Dogecoin “to the moon” with SpaceX. The price subsequently reached an all-time high of USD 0.73.
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However, Musk’s influence hasn’t always been positive. During his appearance on Saturday Night Live in May 2021, he called Dogecoin “a hustle,” which caused the price to drop by 30%. Nevertheless, his support remained: In January 2022, Tesla began accepting Dogecoin as payment for select products.
Our Assessment
Elon Musk’s clarification puts an end – for now – to speculation about government adoption of Dogecoin. For investors, this means no short-term hype from political integration. At the same time, it highlights how heavily Dogecoin’s price continues to rely on Musk’s statements – both positively and negatively.
From a technical standpoint, the situation remains tense. The combination of weak buying interest, falling prices, and critical support zones suggests caution. Those invested in Dogecoin or considering investing should closely monitor the price development and watch for further signals.
In the long term, Dogecoin remains a speculative asset, heavily influenced by media attention and high-profile supporters – most notably Elon Musk. Government adoption is currently not on the table.
Sources
- Coinmarketcap
- TradingView
- America PAC Town Hall (Green Bay, Wisconsin)
| Symbol | DOGE |
| Coin type | Alt Coin |
| Transaction Speed | Medium |
| Pros |
|
| Cons |
|
| Further practical applications | |
| Price | $0.17 |
| 24h % | -0.23 % |
| 7d % | -11.30 % |
| 30d % | -25.87 % |
| 60d % | -48.44 % |
| 1y % | -10.24 % |
| Market Cap | $25,255,939,373.00 |
| Official Links | Website | Source Code |
| Socials | Reddit | X |
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