Dogecoin (DOGE) is trading at $0.1731 during early U.S. hours on Tuesday, showing signs of recovery from Monday’s low of $0.16. The leading meme coin faced downward pressure earlier in the week as investors reacted to Tesla CEO Elon Musk’s comments dismissing speculations about Dogecoin’s government adoption.
Musk Clears the Air on Dogecoin’s Role in the Government
Market chatter surrounding Dogecoin intensified following the establishment of the Department of Government Efficiency (D.O.G.E) in January, a U.S. government initiative led by Musk. Given his well-known affiliation with Dogecoin, many speculated that the token could be integrated into federal operations. However, Musk put the rumors to rest during a town hall meeting in Green Bay, Wisconsin, on Sunday.
“There are no plans for the government to use Dogecoin or anything as far as I know,” Musk stated. He explained that the name D.O.G.E resulted from an online poll, adding, “I was going to call it the Government Efficiency Commission, but that’s a super boring name.”
#ElonMusk confirms: “The U.S. government has no plans to use Dogecoin.”
— Crypto Patel (@CryptoPatel) March 31, 2025
He also clarified there's no link between Dogecoin and the Department of Government Efficiency (DOGE).
Let’s end the confusion — $DOGE isn't part of the Digital Asset Stockpile. Just rumors, nothing more.… pic.twitter.com/TrC4G6BSSz
Despite Musk’s clarification, Dogecoin remains at the center of speculation, especially with global markets on edge ahead of U.S. President Donald Trump’s Liberation Day on Wednesday. Investors are increasingly seeking safe-haven assets, as evidenced by gold hitting new all-time highs.
Technical Outlook: DOGE Faces Key Resistance at $0.20
Dogecoin’s price has been on a downtrend since March 26, when it reached $0.20. The decline was primarily driven by market uncertainty linked to Trump’s impending tariffs and Musk’s government-related comments. DOGE hit a local bottom at $0.16 before rebounding.
Liquidation data from Coinanalyze indicates a spike in long liquidations, totaling $3.3 million in the last 24 hours, signaling strong bearish dominance. Additionally, DOGE remains below key moving averages—the 50-day, 100-day, and 200-day Exponential Moving Averages (EMAs)—suggesting further downside risks.
However, the Relative Strength Index (RSI) at 42 is showing signs of easing bearish momentum, hinting at a potential recovery. A breakout above $0.20 could shift market sentiment, paving the way for a rally toward $0.25, while failure to hold support at $0.16 may trigger further declines toward $0.14.
Also Read: Dogecoin (DOGE) Eyes $0.19 After Rebounding From $0.16 Lows—Is a Bigger Rally Coming?
As traders assess market conditions, Dogecoin’s trajectory will likely hinge on broader economic developments and investor sentiment in the coming days.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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