The price of Dogecoin (CRYPTO: DOGE) tumbled 2% in the last 24 hours to trade at $0.1835 by 4:22 a.m. EST on Friday. The trading volume also dropped by 2% over the 24-hour period.

Dogecoin: What Happened?

The DOGE price drop came after a blow to bullish sentiment.

Elon Musk publicly shut down speculation that the meme coin would play a role in the US Department of Government Efficiency (D.O.G.E).

"There are no plans for the government to use dogecoin or anything. I was going to call it Government Efficiency Commission but that's a super boring name. Then the internet said it needs to be Department of Government Efficiency. I was like Internet is right," Musk said during a speech at the America PAC town hall in Green Bay, Wisconsin.

There are no plans for the government to use dogecoin or anything.

I was going to call it Government Efficiency Commission but that's a super boring name. Then the internet said it needs to be Department of Government Efficiency. I was like Internet is right.

— DogeDesigner (@cb_doge) March 31, 2025

Dogecoin Price Analysis: Heading Towards A Breakout

According to the DOGE/USDT chart analysis on the 1-day timeframe, the price of Dogecoin has been on a sustained downtrend, forming lower highs and lower lows within a well-defined falling wedge pattern.

The price of DOGE has been following an ABCD trend and is nearing the breakout point from the wedge after touching point D, according to data from GeckoTerminal.

At press time, DOGE is currently trading below both the 50-day and 200-day Simple Moving Averages (SMAs), aligning with the sustained downtrend observed in recent months.

The 200-day SMA is located at $0.2466, and it stands above the 50-day SMA, which is at $0.1686, forming a death cross that could trigger further downward pressure on the price.

Meanwhile, the Relative Strength Index (RSI) is moving towards the 30 oversold level from the 40s, indicating that DOGE is currently subject to more significant selling pressure.

However, bullish momentum is also emerging, as the Moving Average Convergence Divergence (MACD) blue line has crossed above the orange signal line, signaling a bullish crossover.

The green MACD bars on the histogram are also increasing from zero, indicating that the price of DOGE is currently in a positive momentum.

Dogecoin Price Prediction

The technical analysis of the Dogecoin price on the 1-day timeframe suggests that DOGE is approaching a breakout point from the falling wedge.

If the bulls succeed in pushing the price of DOGE upward, it could encounter resistance at the 200-day SMA, which is acting as a key resistance level. A breakthrough above this level could propel the price of DOGE towards the next resistance at the 50-day SMA.

However, if the bears exert more pressure, the price of DOGE might find support at the lower boundary of the wedge. A breakdown below this level could trigger further selling and drive the price of DOGE to test the next support at the 0.0 fib level.

Ultimately, the direction of the next major move in the price of DOGE will depend on the balance of bullish and bearish forces.