Dogecoin Faces Turbulent Times Amid Trump-Musk Feud

Dogecoin (DOGE) has recently seen a sharp decline, dropping approximately 7% as tensions escalated between former President Donald Trump and Elon Musk, the coin’s most prominent supporter. The ongoing public spat has created ripples in the crypto market, prompting fears about DOGE’s future amidst bearish trends.

Market Reactions to the Fallout

On June 6, the DOGE price plummeted to around $0.17, extending a troubling trend marked by its third consecutive bearish session. Over the past week, the price has decreased by 14%, contributing to a three-week slide totaling 28%. This downturn aligns with Musk’s departure from a government position that advocated for DOGE, intensifying the public feud after Trump’s threats to retract government subsidies supporting Musk’s projects.

The conflict reached new heights on June 5 when Trump claimed he could terminate economic support for Musk, potentially saving taxpayers “Billions and Billions of dollars.” Musk fired back via social media, arguing Trump’s political support hinged on Musk’s influence and labeling recent economic measures as detrimental to the nation’s budget.

The Bearish Landscape for DOGE

Technical analysis confirms a bearish pattern for Dogecoin, identified as a bear flag, as it fell below the $0.20 threshold. Presently, DOGE is testing crucial support near $0.15, a level coinciding with its 100-week simple moving average (SMA). Analysts are wary of support levels lower than this, notably the 200-day SMA at $0.14 and the previous low of $0.13 from April.

If DOGE fails to maintain these support levels, it may trigger a sharper sell-off, potentially cascading toward a price of $0.06—representing a staggering 66% drop from current values. The relative strength index (RSI) suggests further bearish sentiment, having decreased from 52 to 43, indicating a potential for continued downward pressure.

Musk’s tweets and endorsements have historically provided significant leverage for DOGE. For instance, in 2022, Dogecoin surged over 25% in a single day when Tesla incorporated it as a payment option for select products. More recently, a surge of over 30% occurred after Musk altered the Twitter logo to feature the iconic Shiba Inu, emblematic of the memecoin. However, declining public support from Musk amidst escalating tensions with Trump could dampen DOGE’s speculative appeal and overall market sentiment.

The broader crypto market is also feeling the effects of this feud, as investor confidence falters. Volatility ramps up, with many looking for signs of recovery or further decline in DOGE’s trajectory. As the argument unfolds, the cryptocurrency space is bracing for shifting dynamics influenced by these high-profile figures.