Dogecoin’s price showed a modest 20% surge before retreating following Elon Musk’s appointment to head the newly created Department of Government Efficiency (DOGE), marking a departure from the cryptocurrency’s historically volatile reactions to Musk-related news.
President-elect Donald Trump named Musk and former Republican presidential candidate Vivek Ramaswamy to lead the department on Tuesday, tasking them with streamlining federal bureaucracy and eliminating excess regulations. While the announcement briefly pushed Dogecoin to $0.43, the cryptocurrency quickly retreated to $0.37, representing an 8.30% decline in 24 hours.
Source: Elon
The muted response stands in stark contrast to 2021 when Musk’s endorsements and social media activity propelled Dogecoin to its all-time high of $0.67. During that period, even his appearance on Saturday Night Live proved to be a significant market mover, though his description of Dogecoin as “a hustle” during the show sent prices crashing.
Following the appointment, Musk took to X to outline his vision: “All actions of the Department of Government Efficiency will be posted online for maximum transparency. Anytime the public thinks we are cutting something important or not cutting something wasteful, just let us know!”
Ramaswamy followed with his own announcement, stating DOGE would “begin crowdsourcing examples of government waste, fraud, & abuse,” emphasizing that “Americans voted for drastic government reform & they deserve to be part of fixing it.”
Despite being one of the biggest winners in the post-election rally, gaining 153% since election day compared to Bitcoin’s 30% rise, Dogecoin’s recent performance suggests a changing market dynamic. Technical indicators point to a potential correction, with the Relative Strength Index (RSI) showing overbought conditions and data from Coinglass indicating an increase in short positions.
However, not all indicators are bearish. According to IntoTheBlock, more DOGE was withdrawn from exchanges than deposited in the last 24 hours, suggesting strong holding sentiment among investors. The meme cryptocurrency has also achieved a significant milestone, surpassing XRP to become the sixth-largest cryptocurrency by market capitalization.
Some analysts remain optimistic about Dogecoin’s future prospects. Crypto market analyst Ali Martinez suggests the cryptocurrency could potentially reach $1 if institutional interest in meme coins continues to grow. Additionally, speculation about a potential Dogecoin ETF has added to the market buzz, though no official application has been filed.
Doge to a Dollar?
The elusive $1 target has become a focal point for DOGE believers. It’s a benchmark that has captured imaginations since 2021, with its psychological significance spawning countless “doge to $1” memes over the years. For now, the rally has reignited dreams of making that meme a reality. Can DOGE finally hit $1 this cycle? That’s what the memecoin’s many supporters are hoping for as shown by a chart from legendary trader Angelo at the start of this year, and legendary trader Bluntz, today. Woof.
Source: X
Source: X
For a full history of DOGE, the little memecoin that could, read this. Woof.
