Over the past two weeks, the price of the Department of Government Efficiency (DOGE) token has sharply declined, attracting the attention of investors and analysts. This article examines the reasons for this decrease, current technical analysis, and future prospects for DOGE.
Reasons for DOGE Price Decline
A major factor contributing to the DOGE price drop was recent criticism from Elon Musk towards the US Agency for International Development (USAID), which he labeled as a criminal organization. These statements generated distrust and impacted the market. Additionally, Elon Musk was tasked with reducing federal government spending under the Department of Government Efficiency project.
Technical Analysis and Current Trend
DOGE has been in a strong bearish trend since reaching its peak in November. The price has fallen below key Fibonacci retracement levels and simple moving averages. The Relative Strength Index (RSI) is at 37.23, indicating a downward trend but not yet signaling strong oversold conditions.
Outlooks and Predictions
If DOGE price falls below $0.049, a further decline to $0.03 is possible. However, if DOGE finds support and RSI indicates oversold conditions, a short-term rise to $0.10-$0.12 is possible.
The current situation with the Department of Government Efficiency highlights the volatility of the cryptocurrency market and the need for careful analysis of all risks. Investors should monitor the token's dynamics and support levels to make timely decisions.
