DOGE News: Dogecoin’s Price Drops After Musk Denies Government Adoption Rumors, But Technical Indicators Remain Positive

In the volatile world of cryptocurrencies, Dogecoin’s (DOGE) price has taken a significant turn following a key denial from tech entrepreneur Elon Musk. Speculation about a potential government adoption of the meme coin had fueled a recent rally, but Musk’s statement has caused a sharp drop in its value. However, some analysts are still optimistic about Dogecoin’s future based on its technical indicators.

Will Dogecoin Reach $10? Price Drops as Musk Denies Government Adoption Speculation

Dogecoin’s recent rally, fueled by speculation about its potential government adoption, has taken a hit after Elon Musk firmly denied any official role for the meme coin. The denial follows weeks of excitement surrounding the Department of Government Efficiency (D.O.G.E.), a cost-cutting initiative linked to Musk. Despite this setback, some analysts argue that Dogecoin’s technical indicators still point to potential future gains. Dogecoin saw a sharp rise after Donald Trump’s presidential campaign, during which Musk and his allies pledged to reduce government spending by $1 trillion through D.O.G.E. However, Musk has now confirmed that Dogecoin will not be part of any government adoption initiative.

Elon Musk Confirms No Plans to Adopt Dogecoin for Federal Use

Elon Musk has broken his silence on Dogecoin, confirming that the Department of Government Efficiency (DOGE) will not adopt the cryptocurrency for federal use. Musk clarified that the Doge project is unrelated to the cryptocurrency and focuses entirely on improving government efficiency. The confusion arose due to the renaming of the department, which led to unintentional similarity with the Dogecoin name. Despite public speculation, Musk emphasized the separation between the government initiative and the meme coin.

Dogecoin Bulls Eye $5 Target as Price Stays Above Support

Dogecoin (DOGE) remains above a key support level within a long-term ascending channel, signaling potential for an upward move. A spike in demand could push DOGE toward the middle or upper range of the channel, with targets between $1 and $5 in the short term. Historical trends suggest DOGE may see significant growth in its fourth-year cycle, with some projections exceeding $10. The price is currently at approximately $0.16661, which has been a strong zone of support in the past, leading to previous big price increases.