After Musk and Trump fall out, Dogecoin plunges

Dogecoin has taken a sharp bearish turn, with analysts warning of a potential 66% drop in value following a public clash between Elon Musk and US President Donald Trump.

The cryptocurrency, which has often rallied on Musk’s endorsements, is now facing its third consecutive weekly decline. DOGE is currently trading at $0.17, with bearish technical patterns pointing toward a possible slide to $0.06.

The feud between Musk and Trump escalated on 5 June after the former left his role in the Department of Government Efficiency.

Trump has since threatened to end Musk’s federal contracts and subsidies, prompting the billionaire to respond on X (formerly Twitter) with fierce criticism, including calls for impeachment and mockery of Trump’s budget bill. The fallout has rattled crypto markets, where Musk’s influence is particularly strong.

Historically, Dogecoin has surged on Musk’s backing—from Tesla’s acceptance of DOGE for merchandise in 2022 to Twitter’s temporary rebranding with the memecoin’s logo in 2023.

It also rallied following Trump’s 2024 election win, which Musk vocally supported. The current breakdown in their alliance, however, appears to have reversed that trend.

Technically, DOGE has broken below key support levels, forming a bear flag pattern that analysts say could trigger a further decline to $0.06.

Indicators like the RSI have also turned negative, suggesting continued selling pressure in the short term as traders digest the political drama and shifting market sentiment.

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