Dogecoin price drops by 20% following comments from Musk

DOGE prices have fallen by 5% today and a staggering 20% in the last month. The recent decline is primarily attributed to Elon Musk’s recent statement clarifying that the US government has no intention of adopting Dogecoin as a form of currency. This news has had a negative impact on Dogecoin, causing it to slide by 5% today alone, bringing total losses for the week to 8% and a significant 20% over the past 30 days. This puts DOGE at the bottom of the top 10 most valuable digital assets, even performing worse than Ethereum, which has seen a 15% drop in the same period, trading at around $0.16.

Musk’s comments during a recent town hall event emphasized the lack of connection between the Department of Government Efficiency and Dogecoin, stating that the US government has no plans to incorporate the meme-based cryptocurrency as part of their operations. These remarks have only added to the downward trend in DOGE prices that has been ongoing.

In addition to Musk’s comments, external factors such as macroeconomic headwinds have also played a significant role in influencing DOGE’s price action. Over the past three months, despite being the most valuable joke currency, Dogecoin has struggled to keep up with the bearish market trend. Looking ahead, the announcement of reciprocal tariffs expected in less than 48 hours is likely to further push DOGE prices down.

When considering Dogecoin’s price prediction, caution is warranted in the short term. DOGE has been unable to surpass the $0.205 resistance level for over a month, coupled with the MACD indicator remaining below the signal line, indicating weak momentum. Moreover, the RSI is hovering around 40, suggesting that DOGE is not oversold nor displaying strong bullish momentum. This implies continued consolidation or even potential downside unless there is a significant influx of buying pressure, which is contingent on how the overall crypto market reacts to upcoming events.

Despite the short-term challenges, a bullish outlook is maintained for Dogecoin’s price action in the long run. It is anticipated that a market rally could propel DOGE to reach $1.33 by the end of the year, a seven-fold increase from the current levels and close to 100% above its all-time high of 69 cents.

In conclusion, while the current market conditions may be challenging for Dogecoin, the long-term prospects for the meme-based cryptocurrency remain optimistic, with potential for significant growth in the future. Paying close attention to market trends and external factors will be crucial in determining DOGE’s trajectory in the coming months.