Dogecoin's price turned bearish on June 5, following a public dispute between President Trump and his most esteemed supporter, Musk. In the past 24 hours, the DOGE price has dropped by 7% to $0.17, with a classic bearish pattern indicating a further decline to $0.06.
According to data from Cointelegraph Markets Pro and TradingView, Dogecoin has shown a bearish trend on the weekly chart for the third consecutive trading day.
In the past seven days, the price has fallen by 14%, and the decline over the past three weeks has expanded to 28%, due to the escalating public quarrel between billionaire Musk and Trump.
In recent days, after Musk officially exited the Department of Government Efficiency (DOGE), the quarrel between the two has intensified, with Trump threatening on June 5 to terminate Musk's government subsidies and contracts, potentially saving "billions or even more dollars."
Musk responded on the X platform, stating that without his support, Trump would lose the 2024 presidential election. He referred to Trump's recent spending bill as "the Big Ugly Bill" and supported calls for his impeachment.
The Big Ugly Bill will INCREASE the deficit to $2.5 trillion! https://t.co/jEMS6coT3V
As a staunch supporter of Dogecoin, Musk has historically influenced its price through tweets or by having Tesla accept DOGE payments for certain products. In 2022, after Tesla began accepting DOGE for some merchandise, the price of Dogecoin surged over 25% in a single day.
In 2023, after Musk replaced the blue bird logo of Twitter (now X) with the Shiba Inu image (the Dogecoin logo), the DOGE price soared over 30% within 24 hours.
After Trump wins the election in November 2024, the price of Dogecoin, along with other cryptocurrencies, surged again, with strong support from Musk and the crypto industry.
The escalation of the dispute has led to a broader market sell-off. Investors are now concerned that a reduction in Musk's support may weaken market sentiment for cryptocurrencies and the speculative appeal of Dogecoin, thereby driving down its price.
DOGE has confirmed a bearish flag pattern on the weekly chart, with the price breaking below the flag's lower boundary of $0.20.
The Dogecoin price is currently testing the support level of $0.15, which aligns with the 100-week simple moving average (SMA).
Key support levels to watch on the downside are the 200-day SMA at $0.14 and the low of $0.13 from April 7. A high-volume drop below these support levels could accelerate selling, moving towards the technical target of $0.06 based on the current chart pattern, representing a 66% decline from current levels.
The relative strength index (RSI) is below the midpoint, having dropped from 52 to 43 over the past three weeks, indicating an increase in bearish momentum. An RSI value of 43 suggests that there is still room for downward movement before entering oversold territory again.
As reported by Cointelegraph, a sharp drop in price from the 20-day EMA ($0.20) could increase the risk of further retracement to $0.14 or lower, consistent with the downward trend line shown in the chart.
This article does not contain investment advice or recommendations. Any investment and trading activities involve risks, and readers should conduct their own research before making decisions.
Related: Bitcoin (BTC) ETF sees outflows amid Trump-Musk dispute, market sentiment turns to panic
Original article: “Due to the Escalation of the Trump-Musk Dispute, Dogecoin (DOGE) Price Faces a 66% Drop Risk to $0.06”
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