Key Insights:
Elon Musk has signaled that Dogecoin has nothing to do with the Department of Government Efficiency.
He further added that the government has no plans to use Dogecoin.
The top memecoin has seen a severe decline in the last 3 months, falling from $0.48 in Dec 2024 to $0.16 at press time.
Experts argue that as long as the price remains above the range of $0.15 to $0.17, Dogecoin is likely to bounce back.
At a Townhall meeting in Green Bay, Wisconsin, Elon Musk clarified that his department, The Department of Government Efficiency (DOGE), has nothing to do with the Dogecoin cryptocurrency despite both having the same acronym. Musk was addressing the Town hall meeting convened by the America Political Action Committee (PAC).
There are no plans for the government to use Dogecoin or anything as far as I know. They happen to be similar names, but really, we’re literally just trying to make the government 15% more efficient.”
Elon Musk
However, Elon Musk had previously teased the link with the Dogecoin mascot being featured on the Department of Government Efficiency Portal.
Dogecoin Mascot Added to Department of Government Efficiency (now removed)
The United States Department of Government Efficiency
There was speculation that Elon Musk could use Dogecoin inside the US Government probably for the tokenization of government records or as an internal accounting system.
This was one of the reasons why Dogecoin accelerated from $0.15 to $0.48 in one month after Donald Trump won the US elections.
As for the Government's plan to include blockchain in its tech stack, we at Voice of Crypto have covered the SEC's adoption plan for XRP. If done, the US Government is expected to save around $7.5 billion per year.
However, on the positive side, the US SEC has de-regulated Dogecoin and other memecoins, giving them a free leash to develop themselves.
After yesterday's Townhall, Dogecoin has slid 5.5% over the last 24 hours and might slide further if the market situation worsens. This is the second worst slide in the last 3 months after Dogecoin crashed 36% in the first week of February 2025.
Dogecoin Slides 5% After Elon Musk's Denial of Using It
CoinMarketCap
Further, a look at DOGE charts reveals a severe breakdown in its price which could take it below $0.07 if the US Federal Reserve does not provide a rate cut soon. This happened because the markets prefer utility-based tokens like Bitcoin, Chainlink, and XRP over all others.
Top chart analyst Ali Martinez thinks as long as Dogecoin is within an ascending channel pattern, it is likely to bounce back. At present, this channel has a support around $0.17.
Even if the price moves down temporarily, the bull market trend is not likely to end. However, if the price of Dogecoin moves below $0.15, it might signal an end to its six-month bull phase that started in October 2024.
Several other analysts too agree that as long as DOGE remains above $0.16, it could see a bounce back to $0.35 levels.
Since Donald Trump's win, Dogecoin has made a high of $0.48 on 9 Dec 2024.
Unlike other cryptocurrencies, Dogecoin needs a turnaround from its memecoin image to that of a global payments system working on the most secure Proof of Work consensus mechanism.
The memecoin tag has been hurting both Dogecoin and Shiba Inu despite both having a mature native blockchain. Dogecoin works on the same technology as Bitcoin and Litecoin with minor differences, while Shiba Inu's Shibarium, being a Layer-2 chain, works close to Ethereum. No other major memecoin has its own blockchain.
However, Dogecoin could soon see better days as its ETFs could hit the markets anytime soon. Based on its ETF approval news, crypto whales have already started accumulating.
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