TL;DR

Despite the rumors and speculations that the Musk-led D.O.G.E. might use the meme coin, the billionaire refuted the claims on Sunday evening. While such a statement by Doges most famous proponent could hurt the asset, certain technical aspects indicate that there could be some gains around the corner.

No DOGE to Be Used

During Trumps presidential campaign last year, one of the groundbreaking promises made by him and people close to him, in this case Elon Musk, was the creation of a government department that would identify and eliminate wasteful government spending, aiming to reduce federal expenditures by $1 trillion.

Its name, Department of Government Efficiency (D.O.G.E.), and Musks leadership role led to immense excitement in the meme coin community. Moreover, people started speculating that Dogecoin would eventually be used in some form and that it would benefit from the name resemblance.

The rumors were fueled by the addition of the meme coins logo to the D.O.G.E. website just a day after Trumps inauguration. All of this hype resulted in a massive rally for Dogecoin, as its price skyrocketed from $0.14 ahead of the elections to a multi-year peak of $0.48 a month later.

However, DOGE has failed to maintain its run and has dropped by over 60% since the January peak of $0.42, as it now struggles at $0.163.

What could be even worse for DOGEs upcoming price movements is the fact that Musk refuted the aforementioned rumors on Sunday. Speaking in a Town Hall meeting in Wisconsin, the Tesla CEO said the government has no plans to use DOGE in any form.

They happen to be similar names, but really, were literally just trying to make the government 15% more efficient.

The End or Not?

Musks statement could be regarded as a big blow to Dogecoins bull run aspirations, especially since the asset is far from this cycles peak. However, there are certain positive signs on the technical side of things, as laid out by Ali Martinez.

The analyst noted that the TD Sequential has posted a buy signal on the weekly chart and added that as long as DOGEs price remains above the lower boundary of the channel posted below, it could reignite another surge.

#Dogecoin $DOGE continues to hold above the lower boundary of this channel. A spike in demand here could fuel a rally toward the mid or upper range!

Join me in this trade by signing up to @coinexcom using my referral link https://t.co/73n8mWavUX pic.twitter.com/G92NGsNqZL

The analyst with over 130,000 X followers also informed that DOGE is primed to experience substantial volatility in the following weeks as anxiety is building among Dogecoin holders.