Dogecoin (DOGE) Dips Nearly 10% as Elon Musk Disappoints

Dogecoin (DOGE) traders were shocked by Elon Musk's announcement that the United States (US) government had no plans for DOGE.

Elon Musk's recent statement at a town hall in Wisconsin has left crypto traders in a frenzy as the Tesla boss revealed that the US government has no plans for Dogecoin.

While delivering remarks at the event, Musk was asked by an audience member about the Department of Government Efficiency, an acronym that is DEW and sounds similar to DEW, which stands for Dogecoin.

There has been speculation that the government crypto would be accepted as payment or included in the future plans of the department. However, Musk had this to say:

"As far as I know, there are no plans for the government to use Dogecoin for anything. They're doing two very different things. The names are similar, but they're doing two very different things."

The billionaire went on to explain how the acronym came to be.

"The W is for Wisconsin, since we're in Wisconsin, and the E is for Elon, since I'm doing it. And then we thought, 'what's the first letter of the department?' We said, 'D, for Deep State.' But then we realized that's not a good idea. So we said, 'no D, it's for Department, obviously.' But we thought that people would get tired of hearing about the Deep State, so we decided to go with W, E, D, and then we need one more letter. We thought, 'what does the government do?' It's DEficient, so we put an E."

The statement comes as no surprise to those following Musk closely on X, formerly Twitter, where he has faced backlash and legal trouble for endorsing the token and making statements that drive the meme coin's price higher.

Earlier this year, Musk's company SpaceX announced that it would be integrating Dogecoin into its lunar mission, which sparked reactions from the crypto community.

The billionaire's actions have had a huge impact on the crypto market, especially during last year's bear market.

As for what happened to the logo of Kabosu, the Shiba Inu dog that is used in the Dogecoin meme, it appears to have disappeared from the Dogecoin website. The logo was briefly displayed on the homepage in March, but it no longer appears to be accessible.

The logo addition to the Dogecoin website sparked reactions from the crypto community, who were hopeful that the meme coin would be accepted as payment.

Earlier this year, Musk spoke about how blockchain technology could be applied to different US government departments, and this remains to be seen.

The potential integration of Dogecoin into the federal government's plans has been a topic of interest and speculation among crypto enthusiasts.

Dogecoin derivatives traders on Binance and OKX are betting on an increase in DOGE price, with the long/short ratio, an important indicator, now reading 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.

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.

The hype around Dogecoin has taken a hit as Musk clarified no future plans for the meme coin's use in the federal government or the DEW 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.

The news of the Dogecoin ETF filing and its progress is positive, and such developments could support gains in DOGE.