Dogecoin drops 6% after Elon Musk says he “got carried away” with

Dogecoin (DOGE) slid 6% to roughly $0.069 on Thursday after Elon Musk told The Economist he had “got carried away” with his brief stint leading the Department of Government Efficiency, a comment that instantly rattled traders who link his public remarks to the meme‑coin’s price moves.

Musk’s interview triggers sell‑off

Musk’s wide‑ranging Economist interview, in which he said he “got carried away” with politics and the $DOGE government agency, coincided with Dogecoin’s price slipping from $0.0723 to a low of $0.0685, a breach of the $0.07 support that had held for weeks [2]. The dip left the token down more than 5% for the week, and daily trading volume fell to $690 million, a 15% contraction from the previous session [2]. Spot Dogecoin ETFs recorded a modest net inflow of $345,130 on July 21—their first inflow since June 17—but the flow returned to zero by July 23, indicating fleeting investor interest [1].

Technical picture and on‑chain context

The $0.07 level now sits as resistance, with the 20‑day EMA at $0.073, the 50‑day EMA at $0.078, and the 100‑day EMA at $0.087, forming a bearish stack of moving averages that further caps upside potential [1]. Analysts note that DOGE has lost roughly 78% against Bitcoin over the past 20 months, placing it in a “first area of interest” on the DOGE/BTC pair, though they remain cautious and await a deeper decline on the USD pair before considering a position [1]. Should the price fail to reclaim $0.07 on a daily close, fresh longs could be trapped, with downside targets projected between $0.055 and $0.058 [1].

Market sentiment and tokenomics

While the Department of Government Efficiency shares the DOGE ticker, there is no formal link to the cryptocurrency; the market’s reaction stems from Musk’s historical influence on the token through social media and public statements [2]. No new token supply data or large‑wallet movements were reported in the sources, so the price action appears driven primarily by sentiment rather than on‑chain fundamentals.

What to watch

• $0.07 – broken support now acting as resistance; a close above could signal a short‑term bounce.
• $0.055–$0.058 – next meaningful floor if the downtrend continues.
• ETF flow – any sustained net inflow into Dogecoin ETFs could provide short‑term buying pressure, while zero or negative flows may reinforce the bearish bias.

The episode underscores how Musk’s non‑financial remarks continue to sway Dogecoin’s price, highlighting the token’s vulnerability to sentiment‑driven spikes and drops rather than underlying fundamentals. Whether the meme‑coin can recover its lost ground will hinge on future catalyst‑free price action and any renewed institutional interest.