Dogecoin Plummets 14% Amid Musk Trump Feud

Dogecoin’s price has experienced a significant decline, dropping by 7% amidst escalating tensions between Elon Musk and Donald Trump. This feud has raised concerns among investors about the potential for further declines in the cryptocurrency’s value. The technical bearish patterns observed in Dogecoin’s price chart suggest that its value could drop by over 60%, adding to the growing apprehension in the market.

According to COINOTAG, Musk’s withdrawal of support following his fallout with Trump has had a substantial impact on Dogecoin’s market sentiment. The cryptocurrency’s recent price action reflects the fallout from a highly publicized dispute between Musk and Trump. After Musk’s departure from the Department of Government Efficiency and subsequent clashes with Trump, Dogecoin has experienced a sustained bearish trend. Over the past week, DOGE has declined approximately 14%, extending a multi-week downtrend to nearly 28%. This slump coincides with Musk’s vocal criticism of Trump’s fiscal policies and Trump’s threats to cut Musk’s government contracts, which have historically bolstered Musk’s financial ventures.

The tension between these influential figures has not only affected Dogecoin’s price but also shaken investor confidence in the memecoin’s speculative appeal. Musk’s previous endorsements, including Tesla’s partial acceptance of DOGE and symbolic gestures like replacing Twitter’s logo with Dogecoin imagery, had previously driven significant price rallies. The current discord, however, has reversed this momentum, underscoring the cryptocurrency’s sensitivity to Musk’s public stance.

Market data reveal that Dogecoin is trading in its third consecutive bearish weekly session. The sell-off reflects growing apprehension among traders regarding the sustainability of Musk’s support and the broader implications for the crypto market. This shift may prompt investors to reassess their exposure to DOGE, especially as technical indicators begin to signal deeper corrections.

From a technical perspective, Dogecoin’s price chart exhibits a classic bear flag pattern, which often precedes significant downward moves. After breaking below the flag’s lower boundary at $0.20, DOGE is currently testing critical support near $0.15, coinciding with the 100-week simple moving average. Failure to hold this level could expose the cryptocurrency to further declines toward the 200-day SMA at $0.14 and the April low of $0.13.

The prevailing chart pattern projects a potential drop to approximately $0.06, representing a 66% decrease from current levels. This target aligns with the technical implications of the bear flag and is supported by momentum indicators. The relative strength index (RSI) has fallen from 52 to 43 over the past three weeks, signaling increasing bearish momentum without yet reaching oversold territory, which suggests additional downside risk remains.

Key moving averages are playing a pivotal role in shaping Dogecoin’s near-term trajectory. The 20-day exponential moving average (EMA), currently near $0.20, serves as a resistance level aligned with the bear flag’s lower trendline. A decisive break below this EMA could accelerate selling pressure, increasing the likelihood of a deeper correction below $0.14.

Technical analysts emphasize the importance of monitoring volume trends alongside these indicators. A high-volume breakdown beneath support levels would confirm bearish sentiment and potentially trigger stop-loss orders, compounding the downward move. Conversely, a rebound above the 20-day EMA could stabilize prices, but given the current market dynamics, this scenario appears less probable in the immediate term.

Dogecoin’s recent price decline is intricately linked to the escalating public feud between Elon Musk and Donald Trump, highlighting the cryptocurrency’s vulnerability to external political and social influences. The emergence of a bear flag pattern and weakening momentum indicators suggest that DOGE may face further significant losses, potentially dropping to $0.06 if key support levels fail. Investors should remain cautious and closely monitor technical signals and market sentiment as the situation evolves. Maintaining a disciplined risk management approach is advisable given the heightened volatility and uncertainty surrounding Dogecoin’s outlook.