Dogecoin (DOGE) experienced a sharp decline, dropping 10% in the last 24 hours. After surging to a peak of $0.4385 on Tuesday—the highest since May 2021—the meme-based cryptocurrency has fallen over 16%. This downturn has occurred despite a significant announcement from President-elect Donald J. Trump.
Dogecoin Slumps Despite ‘DOGE’ Formation
Trump unveiled the formation of the Department of Government Efficiency (DOGE), appointing tech mogul Elon Musk and Vivek Ramaswamy to lead the initiative. In his statement on November 12, 2024, Trump expressed confidence that these “two wonderful Americans will pave the way for my administration to dismantle government bureaucracy, slash excess regulations, cut wasteful expenditures, and restructure federal agencies.” He emphasized that their work would be “essential to the ‘Save America’ Movement.”
Elon Musk highlighted the transformative potential of the initiative, remarking that it “will send shockwaves through the system, and anyone involved in government waste.” The project aims to provide advice and guidance from outside the government, partnering with the White House and the Office of Management & Budget to drive large-scale structural reform. The goal is to create “an entrepreneurial approach to government never seen before,” with the work concluding no later than July 4, 2026—the 250th anniversary of the Declaration of Independence.
The announcement was anticipated to generate positive momentum for Dogecoin, given the acronym DOGE and Musk’s well-known affinity for the memecoin. The establishment of the Department of Government Efficiency places Dogecoin in an unprecedented spotlight. With high-profile figures like Trump and Musk potentially referencing DOGE in governmental contexts, the meme coin could see heightened mainstream exposure.
— Elon Musk (@elonmusk) November 13, 2024
One of the most intriguing aspects is the potential for Dogecoin to become a symbolic representation of the Trump administration. The Department of Government Efficiency is likely to make headlines regularly, and with Musk’s involvement, the attention could be enormous. Musk already delivered his first DOGE related meme via X.
— Elon Musk (@elonmusk) November 13, 2024
Crypto analyst degentrading (@degentradingLSD) noted on X that “the bull case for DOGE is that you have a meme here relentlessly promoted by Trump because it’s his Manhattan Project, shilled by Musk—when have you seen this guy fail—and shilled by Vivek—the ultimate smooth talker. It will be a blitz of attention.”
Despite these optimistic projections, Dogecoin’s price trajectory took an unexpected downward turn. Analyst Kevin (@Kev_Capital_TA) provided a technical perspective via X, explaining that the Dogecoin daily Relative Strength Index (RSI) hit 95: “Every time in history the DOGE RSI hit 95 on the daily, it preceded a pretty sizable correction. This technical indicator has never failed in the past, even during the bull run in 2020-2021.”
He predicts that “Dogecoin will go back to $0.26–$0.28 and then reload to come back up and break all-time highs. Daily RSI just tapped 94 again and the 0.786 Fibonacci retracement.” Kevin added that if Bitcoin reaches $94,000–$95,000 in the short term, it could “drag DOGE higher,” but he still anticipates a “bigger correction before heading higher” because “that RSI needs to cool off badly.”
At press time, DOGE traded at $0.35.
