Dogecoin (CRYPTO: DOGE) plunged 6% on Thursday, as Elon Musk admitted in an Economist interview that he got “carried away” with politics and the Department of Government Efficiency.

What Did Musk Actually Say About DOGE?

In a wide-ranging interview with the Economist, Musk said he backed Trump with $200 million in 2024 before heading the so-called Department of Government Efficiency, overseeing $150 billion in budget cuts and forcing tens of thousands of people out of federal jobs.

“I think instead of doing Doge, I would have basically worked on my companies,” Musk said.

While DOGE the government department and DOGE the cryptocurrency have no official connection, Musk’s long association with the token through public statements and social media has kept the two tightly linked in market perception.

Where Does DOGE Stand After 20 Months Of Losses?

Crypto analyst CrediBULL Crypto noted on X that DOGE has fallen roughly 78% against Bitcoin over the past 20 months and has now entered his first area of interest on the DOGE/BTC pair. 

He said he is still looking for a bit more downside on the USD pair before considering a position for the first time.

Meanwhile, spot Dogecoin ETFs recorded net inflows of $345,130 on July 21, their first inflow since June 17, according to SoSoValue data. However, those inflows returned to zero by July 23.

Is Today’s Bounce A Recovery Or A Trap?

DOGE attempts a 1% bounce to $0.069 Friday after yesterday’s breakdown below $0.07, a support level that held for weeks. 

The $0.07 level has now flipped from support to resistance, and every major EMA sits overhead in a bearish stack: 20-day at $0.073, 50-day at $0.078, 100-day at $0.087, and 200-day at $0.103.

Any bounce that fails to reclaim $0.07 on a daily close traps fresh longs rather than signals a reversal. Breakdown targets sit at $0.055 to $0.058 on continuation.

Key levels for DOGE:

  • $0.07 — broken support now acting as resistance
  • $0.073 — 20-day EMA, next ceiling above
  • $0.068 — immediate demand zone below
  • $0.060 to $0.058 — next meaningful floor if $0.068 fails

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