Dogecoin faces setbacks following Elon Musk's comments stating that the cryptocurrency is not included in US government plans. We discuss the impact on trader sentiment and projected price development.
Dogecoin not included in US plans
Dogecoin traders were taken aback by Elon Musk's announcement that the US government has no plans to use DOGE in its activities. Many had hoped that the cryptocurrency would be included in future plans, given Musk’s affinity for Dogecoin. However, Musk himself clarified that these hopes were unfounded. In a Wisconsin town hall, Musk stated, 'As far as I know, there are no plans for the government to use Dogecoin.'
Bets on Dogecoin's rise
Dogecoin derivatives traders on platforms like Binance and OKX continue to bet on an increase in DOGE price. A key indicator—the long/short ratio—shows a value of 3, indicating upward momentum. In the last 24 hours, options trading volume has increased by over 181%, though open interest hasn't shown significant changes. This suggests potential for a price increase in DOGE.
Price forecast and trader sentiment
Current Dogecoin price charts indicate potential gains of up to 35%, testing resistance at $0.24040. Support at $0.21465 presents a hurdle along this path. Technical indicators such as RSI and MACD support a bullish outlook, suggesting positive momentum in DOGE's price trend. However, should demand among traders not hold, the coin could face a slump to the support level at $0.14280. Market pressure from external factors, such as a Bitcoin price drop, also poses risks.
Despite trader disappointment following Elon Musk's comments, there is room for Dogecoin investments to continue growing. With positive market factors, demand for DOGE may remain steady.
