Dogecoin Price Warning: Risks 66% Drop Amid Trump-Musk Feud
The crypto market is buzzing, and not in a good way for Dogecoin holders. The Dogecoin price recently took a hit, dropping around 7% in 24 hours. What’s behind the sudden downturn? It appears a public spat between former President Trump and billionaire Elon Musk is playing a significant role, casting a shadow over the popular memecoin.
Understanding the Trump Musk Feud and Its Ripple Effect
A brewing conflict between Donald Trump and Elon Musk escalated recently, catching the attention of crypto investors. While the full details of the Trump Musk feud are complex, involving disagreements over government spending and political support, the public nature of their dispute seems to be impacting market sentiment, particularly around assets linked to Musk.
Here’s a quick breakdown of the situation:
- The feud intensified after Musk left a government advisory role.
- Trump reportedly threatened Musk’s government contracts.
- Musk responded publicly, criticizing Trump’s policies and political claims.
- This public disagreement between two high-profile figures creates uncertainty.
Recent Dogecoin Price Action and Technical Signals
Following the escalation of the feud on June 5, Dogecoin’s price turned bearish. Data shows DOGE trading lower for three consecutive weekly sessions, dropping 14% in seven days and 28% over three weeks. The current Dogecoin price is around $0.17.
Technical analysis on the weekly chart reveals a classic bearish pattern: a bear flag. This pattern suggests potential further losses. The price has already fallen below the pattern’s lower boundary, around $0.20.
What the DOGE Price Prediction Models Show
Based on the confirmed bear flag pattern, the DOGE price prediction points to a significant downside target. The technical target of this pattern is $0.06. This represents a potential 66% drop from current levels.
Key support levels to monitor on the way down include:
- The 100-weekly Simple Moving Average (SMA) around $0.15 (currently being tested).
- The 200-day SMA at $0.14.
- The April 7 low at $0.13.
A high volume break below these levels could accelerate the move towards the $0.06 target. The Relative Strength Index (RSI) is also trending down (currently around 43), indicating increasing bearish momentum and room for further decline before hitting oversold conditions.
The Impact of Elon Musk Influence on Dogecoin
It’s no secret that Elon Musk influence has historically played a significant role in Dogecoin’s price movements. His tweets, endorsements, and actions (like Tesla accepting DOGE for merchandise or changing the Twitter logo) have often led to sharp price spikes.
Examples of past Musk-driven pumps:
- 2022: Tesla accepts DOGE for merchandise, leading to a 25%+ jump.
- 2023: Twitter logo changes to Shiba Inu, causing a 30%+ spike.
- Late 2024: DOGE rallies post-US election, supported by figures including Musk.
Given this history, investors fear that reduced backing from Musk, especially due to his public conflicts, could negatively impact Dogecoin’s speculative appeal and contribute to the current sell-off.
Broader Crypto Market Impact and Sentiment
The tension between Trump and Musk isn’t just affecting Dogecoin. It’s contributing to a broader Crypto market impact. The conflict adds a layer of political uncertainty that investors dislike. This uncertainty, combined with other market factors, has led to a general shift towards fear in market sentiment, as seen with Bitcoin ETFs experiencing outflows.
This situation highlights how external factors, particularly involving influential figures, can significantly sway the volatile cryptocurrency market.
Conclusion: Navigating the Uncertainty
The escalating Trump Musk feud has undeniably put pressure on the Dogecoin price, triggering technical sell signals that point towards a potential significant drop to $0.06. While the long-term trajectory of Dogecoin and the crypto market depends on many factors, the current situation underscores the risks associated with political and personal conflicts involving key figures like Elon Musk. Investors should conduct their own research and consider the heightened volatility.
