Dogecoin is experiencing a difficult time after Elon Musk, a prominent fan of the dog-themed memecoin, confirmed that there is no relation between Dogecoin (DOGE) and D.O.GE. This news has come as quite a shock for Dogecoin enthusiasts as they believed for a long time that there was a potential for the U.S government to adopt the coin.
Elon Musk’s statements further add pressure to the already struggling coin as it has failed to put up a breakout after range-bound price movement. Recently, Elon Musk shared a Ghibli Anime of himself as a ‘Lion King’ character holding the Dogecoin (dog). While this was interpreted to mean strong support for Dogecoin, his clarification has shuttered the belief of many investors.
No Plans For U.S Government to Use Dogecoin; Musk Clarifies
Tesla owner and head of the U.S Department of Government Efficiency, Elon Musk, has clarified the U.S government stance of Dogecoin. In a question and answer session shared on X by pseudonymous crypto enthusiast ‘DogeDesigner,’ Musk reiterated that while DOGE and D.O.G.E are similar, they are totally different and no correlation whatsoever exists between the two.
“The names are similar but they are two very different things,” Musk said. He further went ahead to say that the selection of the name Department of Government Efficiency (D.O.G.E) was solely because the internet chose the name.
“I was going to call it the Government Efficiency Commission but that’s a super boring name. Then the internet said it needs to be the Department of Government Efficiency. I was like, the internet is right,” he added. He also made it clear that the U.S government does not plan to use Dogecoin further breaking the hearts of DOGE fans.
Is DOGE Losing Investor Confidence?
The price of Dogecoin is dipping further as Elon Musk’s statement stir concerns among the memecoin’s investors. Furthermore, these investors seem to be losing faith in the cryptocurrency. As per the analytics on Glassnode, the Network Value to Transaction (NVT) ratio of Dogecoin has risen significantly.
Usually a rise in NVT means that the value of the network does not coincide with the number of transactions on the network hence confirms lack of investor confidence. In fact, the chart below shows that the NVT has reached the highest point in three months.
Elon Musk’s statements further put pressure on DOGE investors. With the market expectations dampened by the comments, Dogecoin stands at a risk of crashing further as investors might choose to opt out of the market.
Dogecoin Turbulence Continues; What’s Next?
The price of DOGE has been stumbling recently with a bearish trend prevalent in the current market. According to the daily chart on TradingView, Dogecoin has dipped by 17.10% over the last five days. Currently, the coin is trading at $0.1621 with the price moving downwards to breach the support level established during the range-bound price movement.
Having failed to surge past the resistance at $.1949 recently, the coin could continue to struggle if external catalysts for the price do not come into play. However, if the statements by Elon Musk fail to lead to more price drop, DOGE could consolidate below the resistance level and the support at $0.1443.
Traders must thus keep an eye on the market movement moving forward. A drop below $0.1443 support could result in more turmoil for DOGE traders. However, if the coin holds on, a potential recovery could occur invalidating the bearish outlook.
#blockchain #crypto, #decentralized, #distributed, #ledger
This news is republished from another source. You can check the original article here
