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PriceDogecoinplummeted 16% this week following an unexpected announcement from Elon Musk, which left many in the Dogecoin community puzzled. Musk, whose influence on the coin is well-known, made a statement at a recent meeting that raised concerns about the future $DOGE . So what happened, and what does this mean for the meme coin going forward?#DOGENEWS

Musk's announcement shatters hopes for DOGE integration

Elon Musk's announcement took place at a meeting in Green Bay, Wisconsin, where he addressed growing rumors about a possible involvement of the U.S. government in #Dogecoin‬⁩ . In recent months, there have been rumors that the newly formed government efficiency department (#D.O.G.E.) might be related to the meme coin. However, Musk quickly dispelled these rumors, clarifying that the department, despite the acronym coincidence, has no relation to Dogecoin.

According to Musk, the department's priority is to enhance the efficiency of the U.S. federal government, and currently, there is no interest in integrating cryptocurrency into its operations. This news likely disappointed many investors who hoped that DOGE would eventually gain recognition from the government, which could lead to the coin rising above its record of $0.73. Following Musk's statements, that hope now seems to be fading.

Impact on Dogecoin's Price

Dogecoin gained popularity among retail investors over the past few years, largely due to Musk's prominent support. However, this latest event led to a sharp drop in price. Currently, DOGE is trading around $0.16, which is 16.14% lower compared to last week. Musk's statements seem to have dashed the community's hopes that Dogecoin would play a more significant role in the crypto market. This has caused disappointment among discussion participants, as many investors hoped that the D.O.G.E. department would be a step towards the mass adoption of DOGE.

Despite the market downturn, Musk's attitude towards Dogecoin hasn't changed. He previously referred to DOGE as the 'people's cryptocurrency', and it is clear that he still sees value in this coin. However, without new use cases or positive momentum in the broader crypto market, Dogecoin's future looks uncertain. If price declines continue, DOGE could drop even lower, and some analysts predict that the coin may test support levels at $0.14 or even $0.10.

Will Dogecoin return to growth?

Although the sentiment in the Dogecoin community is understandably depressed, there are signs that the meme coin may recover quickly. The support level at $0.16 has proven to be quite resilient, and some traders see this as a potential entry point for buyers.

On the other hand, the distribution chart of Dogecoin supplies shows that large traders or 'whales' are accumulating more DOGE, which may indicate that they believe in the coin's future. Additionally, there is hope among derivatives traders on platforms like #Binance and OKX, who are betting on the rise of DOGE's price. The ratio of long to short positions shows that most traders are betting on price recovery.

Nevertheless, the recent tariff statement from Trump contributed to the overall market decline, adding uncertainty to Dogecoin's prospects. Therefore, it cannot be said with certainty that the coin will recover in the near term, as much depends on renewed interest from buyers and overall market conditions.