DOGE -10.27% in 1 Month Amid Legal Closure and Market Volatility

On DEC 17 2025, DOGE dropped by 0.59% within 24 hours to reach $0.13099, DOGE dropped by 4.32% within 7 days, dropped by 10.27% within 1 month, and dropped by 58.54% within 1 year.

DOGE’s Dissolution and Legal Closure

The Department of Government Efficiency (DOGE), led by Elon Musk, has officially ceased operations, marking the end of one of the most controversial government initiatives in recent history. A coalition of Democratic-led states had previously filed a lawsuit challenging the legality of Musk’s involvement in DOGE, but withdrew the case on December 15, 2025. The lawsuit argued that Musk, operating as a “special Government employee,” assumed powers typically reserved for constitutionally appointed officials, violating the Appointments Clause of the U.S. Constitution.

The case, titled State of New Mexico v. Musk, was brought by more than a dozen states, including New Mexico, Arizona, California, and Massachusetts. The states alleged that DOGE’s operations undermined federal oversight and disrupted state-administered programs by freezing or redirecting funding and staffing decisions. These claims were based on declarations from state officials, who warned of severe consequences in education, labor, and environmental sectors should DOGE’s policies continue.

Despite the initial legal challenges, the case was dismissed without prejudice after DOGE’s formal dissolution and Musk’s departure from the administration. No court ruling on the merits of the lawsuit was reached, leaving constitutional questions about executive authority and the role of private individuals in government unresolved.

Market Implications of DOGE’s Closure

The market response to DOGE’s winding down has been mixed, with DOGE’s price dropping significantly in the past month. As of December 17, 2025, DOGE stands at $0.13099, representing a 10.27% decline over the past 30 days. Analysts have pointed to the broader uncertainty surrounding Trump’s administration and Musk’s continued influence as key factors influencing investor sentiment.

Technical indicators show that DOGE is currently consolidating within a key resistance range of $0.1310–$0.1315. As long as the price remains below this threshold, any upward movement is seen as corrective rather than indicative of a broader bullish trend. On the downside, $0.1290 is the first critical level to watch, as a sustained break below this point could open the door to further declines toward the $0.1266 support area.

Volume activity remains a crucial factor. Sustained high-volume selling suggests continued distribution, while a decline in volume near support levels may indicate waning selling pressure.

Broader Economic and Political Developments

The closure of DOGE coincides with broader economic developments, including delayed U.S. jobs reports revealing a loss of 105,000 federal jobs in October 2025. These cuts were attributed to Musk’s push for sweeping government efficiency measures, including mass resignations at the end of fiscal year 2025. The resulting job losses contributed to an increase in the unemployment rate to 4.6%, the highest since 2021.

The delayed labor market data, compounded by the 43-day federal government shutdown, has added to uncertainty in financial markets. Analysts suggest that the Labor Department’s revised figures show a continued slowdown in hiring, with businesses adopting a cautious stance amid high interest rates and policy unpredictability.

While the Fed has cut its benchmark interest rate three times in 2025, internal divisions persist, with some policymakers reluctant to reduce rates further given inflation remains above the central bank’s target. The next policy decision is scheduled for January 27–28, 2026.

DOGE’s Legacy and Future Legal Challenges

Despite the dismissal of the states’ lawsuit, unresolved legal challenges remain. Lawsuits brought by advocacy organizations and former government employees continue to question whether DOGE staff violated federal transparency laws or exceeded their authority. These cases argue that DOGE’s disbanding does not eliminate the legal controversy, as some executive orders remain in effect and continue to impact federal operations.

The lack of a court ruling on the merits of the states’ case means that no legal precedent has been set regarding the limits of presidential authority in assigning functions to private actors. This ambiguity leaves open the possibility of similar arrangements in future administrations, contingent on judicial and legislative actions.

Elon Musk has since distanced himself from the federal government, focusing instead on his businesses, including Tesla and xAI. However, his influence over political and economic discourse remains significant, with ongoing debates about the intersection of private enterprise and public governance.

Conclusion

The dissolution of DOGE marks the end of an experimental chapter in U.S. governance, but its legal and economic implications continue to unfold. The price of DOGE has reflected this uncertainty, with a 10.27% decline in the past month. While the states’ legal challenge has been dismissed, unresolved questions about executive authority and government efficiency persist, ensuring that DOGE’s legacy remains a subject of political and judicial debate.