Dogecoin slipped nearly 10% in the past week as crypto traders digest Elon Musk’s statement. The Tesla boss made it clear that the US has no plans for DOGE. The sentiment among Dogecoin traders is 69, on a scale of 0 to 100. DOGE price could recover in the short-term, even as the hype around the meme coin dies down.
Dogecoin not in US plans, Musk disappoints traders
Dogecoin (DOGE) traders were shocked by Elon Musk’s announcement that the United States (US) government had no plans for DOGE. When the Tesla boss named the department he leads as Department of Government Efficiency, it raised hopes among DOGE holders.
There was speculation of DOGE being accepted or included in the future plans of the department.
Musk is known for his affinity for Dogecoin and has faced legal trouble for endorsing the token and making statements that drive DOGE price higher. However, Musk’s recent statement makes it clear that the meme coin has no place in the federal government’s plans.
In a town hall in Wisconsin, Musk said, “There are no plans for the government to use Dogecoin for anything as far as I know…The names are similar, but they’re doing two very different things.”
As far as the acronym and the department name are concerned, Musk explained the process that led to the name and how it had no relationship with Dogecoin and its use in the federal government’s transactions.
Traders were hopeful that DOGE would be accepted as payment since the DOGE website briefly displayed the logo of Dogecoin, a Shiba Inu dog named Kabosu. Musk has previously spoken about the application of blockchain technology to different US government departments, and this remains to be seen.
DOGE derivatives traders bet on Dogecoin gain
Dogecoin derivatives traders on Binance and OKX are betting on an increase in DOGE price, the long/short ratio, an important indicator reads 3. Derivatives trader activity is considered key to the direction in which asset price moves in the spot market.
The options volume has climbed 181.45% in the last 24 hours and options open interest noted no significant increase.
Dogecoin price forecast
Dogecoin’s daily price chart shows the likelihood of further gains in DOGE price. Dogecoin could gain 35% and test resistance at $0.24040, the upper boundary of a Fair Value Gap on the DOGE/USDT daily price chart.
The lower boundary of the FVG at $0.21465 acts as a hurdle on the path to $0.24040. A rally to this level marks over 20% gains.
Two key technical indicators, the RSI and MACD support a bullish thesis for the meme coin. RSI reads 46 and is sloping upwards. MACD flashes green histogram bars on the neutral line, meaning there is an underlying positive momentum in DOGE price trend.
If Dogecoin fails to sustain demand among traders, the meme coin could slip to its March 11 low and test support at $0.14280. A flashcrash in Bitcoin (BTC) could usher a steep correction in crypto prices, sending the meme coin to retest its March 11 low.
Dogecoin trader sentiment and what to expect
The hype around Dogecoin has taken a hit as Musk clarified no future plans for DOGE’s use in the federal government or DOGE department. While sentiment among Dogecoin traders remains above the 30-day moving average, it could decline in the event of a market-wide correction.
Dogecoin supply distribution chart on Santiment shows that traders holding between 1 million and 10 million DOGE tokens added 220 million meme coins to their portfolio in March. If whales continue to accumulate the meme coin, it could act as a catalyst and fuel a bullish thesis for the meme coin.
With Dogefather missing in action, will DOGE recover?
Musk gained popularity in the crypto community as the Dogefather. As the Tesla boss distances himself and his Department of Government Efficiency from DOGE, it remains to be seen whether the meme coin will maintain its relevance.
DOGE has been accepted as a blue-chip meme coin with the largest market capitalization in the sector. With a market cap above $26 billion, Dogecoin could maintain its relevance and continue to find utility if traders digest the development while sustaining demand across exchanges.
The news of the Dogecoin ETF filing and its progress is positive, and such developments could support gains in DOGE.
Disclosure: This article does not represent investment advice. The content and materials featured on this page are for educational purposes only.
