Key takeaways:
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Dogecoin dropped about 7% on June 6 as the general public spat between President Trump and Elon Musk escalated.
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DOGE/USD bear flag hints at a possible 66% drop.
Dogecoin’s (DOGE) worth flipped bearish on June 5 after a public feud broke out between US President Donald Trump and its most celebrated backer, Elon Musk. DOGE worth is down 7% during the last 24 hours to $0.17, with a traditional bearish sample projecting additional losses to $0.06.
Musk’s breakup with Trump unhealthy for Dogecoin
Information from Cointelegraph Markets Professional and TradingView reveals Dogecoin buying and selling in a 3rd consecutive bearish session on the weekly candle chart.
The worth is down 14% in seven days, extending the three-week-long slide to twenty-eight%, as billionaire Elon Musk escalated his public spat with President Donald Trump.
The fallout that has been sparring in current days after Musk’s official departure from the Division of Authorities Effectivity (DOGE) escalated on June 5 with Trump threatening to terminate Musk’s authorities subsidies and contracts, probably saving “Billions and Billions of {dollars}.”
Musk responded on X, claiming Trump would have misplaced the 2024 US Presidential Election with out his assist. He referred to as Trump’s current spending invoice the “Massive Ugly Invoice” and backed requires his impeachment.
The Massive Ugly Invoice will INCREASE the deficit to $2.5 trillion! https://t.co/jEMS6coT3V
— Elon Musk (@elonmusk) June 5, 2025
Musk, a vocal Dogecoin supporter, has traditionally influenced its worth by means of endorsements, similar to tweets or Tesla’s partial acceptance of DOGE for funds. Dogecoin jumped greater than 25% in a single day in 2022 after Tesla started accepting DOGE as fee for chosen merchandise.
Associated: Bitcoin ETFs bleed on Trump-Musk fallout as sentiment turns to concern
In 2023, DOGE worth spiked greater than 30% inside 24 hours after Musk changed the blue chook brand on the Twitter (now X) web site with a picture of a shiba inu, the memecoin’s brand.
Dogecoin once more soared alongside different cryptocurrencies after Trump’s election victory in November 2024, following a marketing campaign that Musk and the crypto business closely backed.
The escalating battle has led to a broader market sell-off. Traders at the moment are afraid that lowered backing from Musk might dampen crypto sentiment and DOGE’s speculative attraction, pushing its worth down.
DOGE’s bear flag targets under $0.1
DOGE has confirmed a bear flag sample on the weekly chart after dropping under the decrease boundary of the flag at $0.20.
Dogecoin’s worth is at the moment testing the assist stage at $0.15, aligning with the 100-weekly easy shifting common (SMA).
Key assist ranges to observe on the draw back are the 200-day SMA at $0.14 and the April 7 low at $0.13. A excessive quantity transfer under these assist ranges might speed up the sell-off towards the technical goal of the prevailing chart sample at $0.06, or a 66% decline from the present stage.
The relative power index (RSI) is under the midline and has dropped from 52 to 43 during the last three weeks, indicating an growing bearish momentum. The RSI’s worth of 43 suggests that there’s extra room for the draw back earlier than oversold situations set in once more.
As Cointelegraph reported, a pointy downturn from the 20-day EMA ($0.20), which aligns with the flag’s decrease trendline as proven within the chart above, might improve the danger of a deeper correction to $0.14 or decrease.
This text doesn’t include funding recommendation or suggestions. Each funding and buying and selling transfer includes threat, and readers ought to conduct their very own analysis when making a call.
