- Dogecoin remains under three significant daily moving averages following Elon Musk’s apparent detachment from the D.O.G.E. agency.
- Global market uncertainties surrounding Trump’s tariff policies are boosting risk-off attitudes.
- Long liquidations for DOGE derivatives reached $3.3 million on Tuesday, surpassing $2.9 million in short liquidations.
- The RSI’s rebound past 40 suggests the potential for a breakout from a falling wedge pattern aiming for $0.25.
Dogecoin (DOGE) is trading at $0.1731 during the early hours of Tuesday in the US, recovering from a support level of $0.16 tested on Monday. The leading meme cryptocurrency faced challenges at the start of the week as investors responded to remarks made by Tesla’s CEO, who is involved with the Department of Government Efficiency (D.O.G.E.) in the United States.
In global markets, traders are preparing for US President Trump’s “Liberation Day” this Wednesday. The surge in gold prices to record highs on Tuesday indicates a preference among investors for the precious metal as a safeguard against the looming tariff conflicts and economic uncertainty.
US government has no intention to adopt Dogecoin – Musk
Dogecoin gained renewed attention with the launch of Musk’s D.O.G.E. agency in January, sparking speculation within both the community and the broader cryptocurrency market regarding the potential for the token to be recognized as an official governmental cryptocurrency. Musk’s close ties to the memecoin intensified these expectations. However, the billionaire emphasized that the resemblance between the two names was purely coincidental while discussing the federal initiative to cut spending and reduce the deficit.
“As far as I know, there are no plans for the government to utilize Dogecoin or anything of the sort,” Musk stated during a town hall session in Green Bay, Wisconsin, on Sunday.
“The names are just similar; we’re genuinely focused on making government 15% more efficient,” he further clarified.
Musk mentioned that the D.O.G.E. name was chosen after conducting an online survey, mentioning, “I initially considered naming it the Government Efficiency Commission, but that’s quite a dull name.”
Doge price movements reveal market uncertainty
Since its peak at $0.20 on Wednesday, March 26, Dogecoin has been in a downtrend, driven by risk-averse sentiment ahead of Trump’s “Liberation Day” tariffs throughout the crypto market. This downward movement continued to $0.16 as investors reacted to comments from Musk on Monday.
Recent data from Coinanalyze indicates that long liquidations surged to $3.3 million in the past 24 hours, suggesting the bears have gained an advantage.
Dogecoin liquidations chart
The token’s positioning below the three daily Exponential Moving Averages (EMA)—including the 50-day, 100-day, and 200-day—suggests an increased likelihood of selling pressure. Traders might expect resistance around $0.20, where Dogecoin faced rejection on Wednesday.
DOGE/USDT daily price chart
Should the bulls maintain their position following the rebound from support, DOGE could confirm a breakout above the $0.20 mark. The Relative Strength Index (RSI) trending upward at 42 indicates a potential reduction in bearish momentum, suggesting the possibility of continued recovery and increased buying interest.
In the short term, keeping an eye on the falling wedge pattern in the daily chart is essential. A confirmed breakout above the upper trend line could negate the bearish outlook concerning support at $0.16 and the November 3 anchor at $0.14. If Dogecoin surpasses $0.20, bulls may aim for $0.25, a level that transformed into resistance back in February.