Is Dogecoin hype dead? Elon Musk says DOGE not in US plans
Dogecoin has dropped nearly 10% in the past week as traders react to Elon Musk’s latest statement. The Tesla CEO made it clear that the US government has no plans for DOGE, dampening investor sentiment. However, with trader sentiment at 69 on a scale of 0 to 100, DOGE price could still see a short-term recovery, despite the fading hype around the meme coin.
Dogecoin not in US plans, Musk disappoints traders
Dogecoin traders were surprised when Elon Musk denied any US government plans for DOGE. Speculation had been growing after Musk named his department “Department of Government Efficiency”, leading some to believe DOGE might play a role in government transactions.
- Musk has previously endorsed Dogecoin, leading to legal scrutiny over price manipulation claims.
- His recent statement clarifies that DOGE has no official role in US government operations.
During a Wisconsin town hall, Musk stated:
“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.”
Despite Musk’s long-standing support for blockchain applications, the DOGE website briefly displaying its logo fueled false hopes of government adoption.
DOGE derivatives traders bet on Dogecoin gain
Despite Musk’s statement, derivatives traders remain bullish on DOGE, expecting a potential price recovery.
- On Binance and OKX, traders are placing long bets, with the long/short ratio at 3.
- The options trading volume surged 181.45% in the last 24 hours, signaling high speculative interest.
While open interest has not seen a significant increase, derivatives activity is often a leading indicator of spot market trends.
Dogecoin price forecast
Dogecoin’s daily price chart suggests further gains could be ahead, with a potential 35% rally toward $0.24040.
- The Fair Value Gap (FVG) indicates support at $0.21465, acting as a key hurdle on the path to $0.24040.
- If DOGE reaches this level, it would represent a 20% price increase.
Technical indicators support a bullish outlook:
- RSI at 46 is trending upward, suggesting increasing buying pressure.
- MACD histogram bars are green, indicating positive momentum in DOGE’s price action.
However, if demand weakens, DOGE could retest the March 11 low at $0.14280. A Bitcoin correction could also trigger a steep decline in the entire crypto market, affecting DOGE prices.
Dogecoin trader sentiment and what to expect
Dogecoin hype has taken a hit as Musk distances himself from government-related DOGE adoption.
- Trader sentiment remains above the 30-day moving average, but a broader market correction could drive it lower.
- Whale accumulation continues, with holders of 1 million to 10 million DOGE adding 220 million DOGE to their portfolios in March.
If large investors keep accumulating, it could support a bullish outlook for Dogecoin despite weakening hype.
With Dogefather missing in action, will DOGE recover?
Elon Musk has been a key figure in Dogecoin’s rise to mainstream popularity, earning him the nickname “Dogefather”.
- As Musk steps back from DOGE-related discussions, the meme coin’s long-term relevance is uncertain.
- Dogecoin remains the largest meme coin by market capitalization, holding over $26 billion in value.
DOGE’s future depends on sustained demand, upcoming utility developments, and institutional interest. The progress of the Dogecoin ETF filing could be a positive catalyst for the meme coin’s next move.
