Dogecoin (DOGE) Price Drops 5% After Elon Musk Clarifies His 'Department of Government Efficiency' (DOGE) Initiative

Dogecoin has experienced a significant decline in the past few hours, facing a sharp selloff near resistance levels. This drop was triggered by a statement from Elon Musk

Elon Musk has clarified that the Department of Government Efficiency (DOGE), which is an initiative by the head of the initiative is known to be a head of a company that makes electric vehicles and is the head of a space exploration company, is not going to be using the memecoin.

Recently, there has been a significant decline in the price of Dogecoin, which has also impacted various on-chain metrics. According to data from Coinglass, Dogecoin experienced over $9 million in total liquidations. Out of this amount, $6.5 million was from buyers closing out their long positions, and $2.55 million was from sellers ending their positions.

Furthermore, Dogecoin’s open interest, which measures the total outstanding trading positions, decreased by 1.44%, dropping to approximately $1.6 billion.

This reduction follows an announcement by Elon Musk, clarifying that his government initiative, the Department of Government Efficiency (DOGE), is not affiliated with the meme coin. This clarification came after a mix-up on a website showed the Dogecoin mascot, which temporarily sent Dogecoin’s token price soaring by 14% in February.

Elon Musk stated that the initiative was initially going to be called the “Government Efficiency Commission,” but it was later changed to the Department of Government Efficiency (DOGE) following feedback from the public. The coincidence in the acronym led many to believe that the U.S. government would be adopting the memecoin, which was further fueled by a report from Benzinga.

However, Elon Musk's recent statement on the initiative being named after a new government agency has cleared up the speculation.

As the head of the initiative is also known for his interest in cryptocurrencies, particularly Dogecoin, he had previously announced his involvement in an initiative to improve the efficiency of the U.S. government.

Recently, there has been a strong selloff in Dogecoin as it approaches a key resistance level. This selloff was triggered by a statement from Elon Musk, who clarified that the U.S. government does not intend to adopt the widely-known memecoin, Dogecoin.

Dogecoin’s Netflow Trends Negative

Recently, Dogecoin’s price has sustained a setback, which has had a notable impact on several on-chain metrics. As per data from Coinglass, Dogecoin experienced a total of $9 million in liquidations.

Among these liquidations, $6.5 million were from buyers closing out their long positions, while $2.55 million were from sellers ending their positions. Additionally, Dogecoin’s open interest decreased by 1.44%, reaching around $1.6 billion.

This reduction follows an announcement by Elon Musk, clarifying that his government initiative, the Department of Government Efficiency (DOGE), is not affiliated with the meme coin. This clarification came after a mix-up on a website showed the Dogecoin mascot, which temporarily sent Dogecoin’s token price up by 14% in February.

Elon Musk shared that the initiative was originally going to be called the “Government Efficiency Commission,” but it was later renamed to the Department of Government Efficiency (DOGE) following feedback from the public. The name shares an acronym with the memecoin, highlighting Musk’s well-known fondness for Dogecoin.

However, the recent denial of any endorsement from Elon Musk has created a mixed sentiment in the market. This has made traders of DOGE lose hope, which is evident in the sharp decline observed in its price.

According to Coinglass data, Dogecoin experienced a significant outflow of $4.2 million from exchanges in the last 24 hours, signaling that many holders are withdrawing their holdings. Despite the recent dip in price, this movement suggests that investors are seizing the opportunity to accumulate more Dogecoin.

Such activities could potentially stabilize and boost the price of DOGE if the buying pressure continues to build during these lower price levels.

What’s Next for the DOGE Price?

Taking a look at the Ema20 trend line, Dogecoin has dropped below it, which is an indication that the sentiment remains negative. But buyers are seen to be defending a drop below the $0.16 level. At press time, the token is changing hands at $0.167, down over 0.56% over the last 24 hours’ trading.

The 20-day Ema at $0.171 is seen to be decreasing while the RSI is spotted to be trading below the midpoint, which is a short-term bearish signal. The DOGE/USDT pair may aim for a retest of the $0.143 support level. A drop from this level could send the price toward $0.11.

On the other hand, if the price shows an upturn from the current level and manages to break above the 50-day Sma, it will be a signal that the bulls are attempting to form a higher low. If buyers succeed in pushing the price toward