D.O.G.E government efficiency department officially established, does it have a big price impact on DOGE?
The Government Efficiency Department (DOGE), announced by Donald Trump in November 2024, is a temporary organization in the United States, not a federal utive department, and its establishment requires approval from Congress. Its main goal is to improve government efficiency and productivity through modern federal technology and software.
On the evening of January 21st Beijing time, after taking the oath of office as the 47th President of the United States, Trump officially established the Department of Government Efficiency through utive order, and the world’s richest man, Elon Musk, will lead the department. Interestingly, in the statement issued by Trump, the abbreviation for the Department of Government Efficiency was explicitly stated as ‘DOGE’. Foreign media have noticed that this abbreviation coincides with the name of the popular internet meme Shiba Inu, Doge. The cryptocurrency Dogecoin, which has gained popularity in recent years, has also seen a dramatic increase in popularity due to Musk’s public praise and enthusiastic promotion.
On the day when Trump announced the establishment of the Government Efficiency Department, Dogecoin immediately surged more than 10%. According to Gate.io market data, DOGE is currently priced at $0.363, with a 24-hour growth rate narrowing to 5.64%. DOGE is still down 50% from its historical high in 2021. The current circulating market value of DOGE token is $53.4 billion, ranking 7th in the entire market.
DOGE Token Market Analysis
Trading data
- Current price: 0.36393 USDT
- 24h Change: 5.64%
- 24-hour high price: 0.40181 USDT
- 24-hour lowest price: 0.33887 USDT
- Support level: 0.35697 USDT
- Resistance level: 0.38322 USDT
- Market sentiment: extreme greed (Fear & Greed Index: 84)
Technical indicators
- RSI: Overbought state, suggesting a possible pullback in the short term.
Trading Strategy Recommendation
Strategy 1: Short-term pullback trading
- Direction: Bearish
- Entry Price: 0.36393 USDT (Current Price)
- Stop Loss Price: 0.38322 USDT (Resistance Level)
- Target Price: 0.35697 USDT (Support Level)
Reason: The current market sentiment is extremely greedy, and the RSI indicates overbought conditions, which may lead to a price pullback. Choose to enter at the current price, set a stop loss at the resistance level to control risk, and set the target at the support level.
Strategy 2: Breakout Trading
- Direction: Bullish
- Entry price: 0.38322 USDT (breaking through resistance)
- Stop loss price: 0.35697 USDT (support level)
- Target price: 0.40181 USDT (24-hour high)
Reason: If the price breaks through the resistance level of 0.38322 USDT, it may trigger further upward movement. Set a stop loss at the support level after entering to protect funds, and set the target at the 24-hour high to take advantage of the potential upside.
Future Outlook
With the strengthening of the brand association between DOGE and the government efficiency department, coupled with Musk’s continuous promotion, DOGE may become a symbolically and practically dual asset. Driven by strong market sentiment and hot narrative, DOGE is expected to maintain a positive trend in the short term. If it can break through the current resistance level and gain more support in practical value, it may re-challenge historical highs in the medium to long term. Investors should adjust their strategies according to market dynamics and manage risks effectively.
