Key takeaways:
Dogecoin dropped about 7% on June 6 as the general public spat between President Trump and Elon Musk escalated.
DOGE/USD bear flag hints at a possible 66% drop.
Dogecoin’s (DOGE) value flipped bearish on June 5 after a public feud broke out between US President Donald Trump and its most celebrated backer, Elon Musk. DOGE value is down 7% during the last 24 hours to $0.17, with a basic bearish sample projecting additional losses to $0.06.
Musk’s breakup with Trump dangerous for Dogecoin
Information from Cointelegraph Markets Pro 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 latest days after Musk’s official departure from the Department of Government Efficiency (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 help. He known as Trump’s latest spending invoice the “Huge Ugly Invoice” and backed requires his impeachment.
The Huge 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 value by means of endorsements, equivalent to tweets or Tesla’s partial acceptance of DOGE for payments. Dogecoin jumped more 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 fear
In 2023, DOGE value spiked greater than 30% inside 24 hours after Musk replaced the blue fowl emblem on the Twitter (now X) web site with a picture of a shiba inu, the memecoin’s emblem.
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 diminished backing from Musk may dampen crypto sentiment and DOGE’s speculative enchantment, pushing its value down.
DOGE’s bear flag targets under $0.1
DOGE has confirmed a bear flag pattern on the weekly chart after dropping under the decrease boundary of the flag at $0.20.
Dogecoin’s value is at the moment testing the help degree at $0.15, aligning with the 100-weekly easy shifting common (SMA).
Key help 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 help ranges may speed up the sell-off towards the technical goal of the prevailing chart sample at $0.06, or a 66% decline from the present degree.
The relative strength index (RSI) is under the midline and has dropped from 52 to 43 during the last three weeks, indicating an rising bearish momentum. The RSI’s worth of 43 suggests that there’s extra room for the draw back earlier than oversold circumstances 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, may improve the chance 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 choice.
