Dogecoin has weathered a cold shower from none other than Elon Musk himself. During a weekend rally in Wisconsin, the Tesla CEO shut down all rumors of integrating DOGE into the government’s Department of Government Efficiency – a project also named DOGE. While the community was left disappointed, the memecoin’s price held surprisingly strong.
Big Hopes Fueled by the Name and Musk’s Involvement
When Donald Trump officially launched the new government agency, DOGE, on January 20, crypto enthusiasts took notice. Although the institution had no ties to crypto, the name alone sparked bullish sentiment in the Dogecoin community.
Excitement only grew when Elon Musk was named head of the agency – a well-known DOGE supporter who has repeatedly backed the coin both in public statements and with subtle online nods.
Elon: “Just a Coincidence”
Over the weekend, however, Musk clarified things. He firmly denied any plan to use Dogecoin in connection with the government agency.
“I originally wanted to name it the Commission for Efficiency. But the internet chose otherwise,” he said, dismissing the name overlap as mere coincidence.
This came as a shock, especially since the official DOGE website featured the Dogecoin mascot – the iconic Shiba Inu – just weeks ago, adding fuel to speculation.
Dogecoin Price Holds Strong Despite the Blow
For DOGE fans, Musk’s denial came at a bad time. The memecoin was already facing rejection at a key resistance level of $0.21 and was slipping downward.
But instead of crashing, Dogecoin only dipped 1.12% – a show of strength from the community and traders.
The next day, DOGE rebounded from an intraday low of $0.1595, setting the tone for today’s bullish momentum.
DOGE Is Rising Again – Is Another Bull Run Coming?
In the last 24 hours, Dogecoin has gained over 4%, reclaiming lost ground and currently trading at $0.1738. This quick recovery has analysts wondering if a larger breakout is on the horizon.
If DOGE continues to hold the $0.16 support, some analysts are eyeing bullish targets as high as $2.28 or even $7, depending on broader market conditions.
Conclusion: DOGE Took a Hit – But It Might Just Be Warming Up
While Elon Musk’s comments shut down rumors of Dogecoin entering the U.S. government, the token proved its resilience. Instead of collapsing, it bounced back – and might be gearing up for the next leg of a new bull cycle.
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