Elon Musk doused optimism for the US government to adopt Dogecoin at the America PAC town hall event on Thursday. The head of the Department of Government Efficiency (DOGE) noted that the government agency only bears a nominal resemblance to the memecoin.

Elon Musk Dispels Rumors Of Dogecoin Adoption By The US Government

Speaking at the event, Musk asserted that the government will not be using Dogecoin, despite persistent rumors to the contrary. The speculation arose from the creation of the Department of Government Efficiency, a name chosen by Musk himself.

The agency is a part of the administration's initiative to streamline and optimize government operations, focusing on enhancing efficiency and reducing waste.

As rumors of the new agency unfolded online, a trend on X, formerly Twitter, emerged, suggesting that the acronym 'DOGE' was derived from the popular memecoin, Dogecoin.

Capitalizing on the trend, Musk decided to name the agency accordingly. In his words: "The name is similar but they are two different things. But there are no plans for the government to use Dogecoin as far as I know. I decided to keep the name because the internet is right."

The Tesla CEO is no stranger to Dogecoin, having previously announced that the electric car company would accept the memecoin for products in the past.

Earlier this week, Musk teased an anime-themed Dogecoin on X, setting the stage for a $2 rally for the memecoin.

The cryptocurrency community responded enthusiastically to the news, highlighting the possibility of a significant price surge if Dogecoin were to be used by the government.

However, Musk's statement now dispels that scenario, leaving the memecoin's fate in the hands of market forces.

Dogecoin price is currently down nearly 2% on the day in response to the report. At the time of writing, DOGE trades at $0.1660 as it eyes a push toward the $1 mark.

The news adds pressure to reports of the memecoin forming a falling wedge pattern, which could lead to a breakout.

But optimists are still confident that the dog-themed coin can shake off the negative sentiments to post new all-time highs.

One analysis claims that if the Dogecoin price breaks a 3-month trendline, an $8 valuation for the memecoin is in play.

Others claim that the House of Doge Reserve launch will be a tailwind for Dogecoin price, sending the dog-themed coin on a strong rally.