Dogecoin (DOGE) Has Proven Its Resilience Following a Disappointing Comment from Elon Musk

Dogecoin (DOGE) has proven its resilience following a disappointing comment from Elon Musk, which led to a temporary drop in its price.

Elon Musk has dashed the hopes of many crypto enthusiasts who believed that the newly-formed Department of Government Efficiency (D.O.G.E.) would be adopting Dogecoin (DOGE).

During a rally in Wisconsin on Sunday, Musk was asked by an audience member about the D.O.G.E. agency and if it would be using any crypto in the upcoming year. However, the billionaire quickly dismissed the speculations.

“There’s no D.O.G.E. Agency. They’re not going to be using any cryptocurrency,” Musk stated bluntly, deflating the hopes of those who had been eagerly anticipating the government body’s involvement in the crypto space.

Earlier this year, there was a buzz among crypto enthusiasts as the agency, which is focused on improving the efficiency of government programs, was named D.O.G.E., an acronym that sparked speculation that it might be linked to Dogecoin.

The agency’s official website had also briefly showcased the Dogecoin mascot in February, further fueling the rumors.

However, Musk, who is known for his enthusiasm for Dogecoin and his signature bluntness, quickly put those speculations to rest.

In January 2025, President Joe Biden announced the creation of the D.O.G.E. agency as part of a broader government initiative to streamline and improve programs.

The agency is tasked with examining programs across various departments and agencies to identify inefficiencies and suggest recommendations for improvement.

Elon Musk’s Comments on D.O.G.E. Agency Come Amid Key Breakout

Elon Musk’s recent comments come at a time when Dogecoin has been displaying resilience. The token is still recovering after being sold at the key $0.21 resistance earlier this week.

After a brief dip following Musk’s comments about the D.O.G.E. agency being named after Dogecoin and not planning to use any crypto, the price impact was minimal.

Dogecoin closed the day with only a 1.12% correction, a surprisingly small drop, especially considering the news. The token’s resilience was evident as it quickly recovered the lost ground the following day.

Recovering from an intraday low of $0.1595, DOGE showed bullish strength as the candle closed with a 3.7% gain on Monday. This bullish recovery continued in the days after Musk’s remarks.

Over the past 24 hours, Dogecoin has appreciated more than 4%, reflecting a broader recovery in the cryptocurrency market. At the time of writing, DOGE is currently trading at $0.1738, having already recovered all of the losses.

Dogecoin Price Prediction: Analysts Set Price Targets Higher

As Dogecoin shows signs of recovery and potential for further gains, analysts are setting their price targets higher.

After successfully holding the critical support level at $0.16, the token could continue to see upward movement, according to technical analysis.

The price action suggests that DOGE is not only recovering but could be gearing up for new highs in the near future.

With an ability to withstand market volatility and bounce back after setbacks, the token has displayed resilience.