Musk-Trump Conflict Hit Dogecoin

Musk-Trump Conflict Hit Dogecoin: Price Declines

The sharp public dispute between Elon Musk and former US President Donald Trump triggered a new wave of decline in the price of the popular meme token Dogecoin (DOGE). Dogecoin has experienced significant depreciation over the last 24 hours, 7 days, and 3 weeks, while technical indicators signal a greater risk of further decline. Experts emphasize that the political tension is affecting the crypto market and that caution is needed.

Sharp Drop in Dogecoin Following Musk-Trump Tension

The tension that began when Elon Musk openly criticized the comprehensive tax and spending bill supported by the Trump administration on the social media platform X, calling it a “disgrace”, created fluctuations in the cryptocurrency market. Musk reacted with the phrase “kill the bill”, while former President Donald Trump stated the next day that he was “very disappointed” with Musk. Trump accused Musk of “going crazy” on his own social media platform Truth Social and said, “He knew months ago that I would lift the electric vehicle mandate, but now he reacts?” These mutual harsh statements marked the first serious public rupture between Musk and Trump, who had previously maintained a friendly relationship.

As the tension escalated, Dogecoin, the most famous humor-themed coin in the crypto market, was directly affected. The price of Dogecoin began to decline from June 5 as the Musk-Trump conflict deepened. Trump threatened to end Musk’s cooperation with the US government and the state subsidies given to his companies, stating that this could save billions of dollars. In response, Musk tweeted that Trump would lose the 2024 presidential election without his support and referred to the new spending bill as the “Big Ugly Bill”, expressing support for initiated impeachment calls. This standoff between two power centers triggered intense selling pressure on Dogecoin.

Conclusion: It is well known that Musk has been one of Dogecoin’s biggest supporters for years and that even his smallest comments on social media could influence DOGE’s price. However, recent developments have revealed how sensitive the crypto market can be to external political conflicts. The rapid drop in Dogecoin’s price shows that the Musk-Trump tension has shaken speculative confidence in the market.

Dogecoin’s Performance Over the Last 24 Hours, 7 Days, and 3 Weeks

According to the data above, Dogecoin lost about 7% of its value in the last 24 hours, dropping to $0.17. The weekly loss reached 14%, and the total three-week decline reached 28%. The selling wave, which accelerated after June 5, dragged DOGE down to its lowest levels since May 7. These sharp losses caused concern among Dogecoin investors and increased the uncertainty regarding the short-term outlook of the cryptocurrency.

Technical Analysis: Support Levels and Downside Risk

The Dogecoin price chart technically resembles a classic bearish continuation pattern known as a bear flag. This pattern indicates that the current downtrend may continue. After falling below the $0.20 threshold, DOGE is currently testing the critical support area around $0.15. This level is significant as it coincides with the 100-week simple moving average.

Technical indicators also show a weakening momentum. For example, the Relative Strength Index (RSI) has dropped from 52 to 43 in recent weeks, indicating increased bearish momentum in the market. Although the RSI has not yet entered oversold territory, it serves as a warning of further downside risk. The continued decline in trading volume also confirms the downward trend. These prominent technical indicators present a cautious outlook for Dogecoin.

Possible Scenarios: The current bear flag formation theoretically suggests that DOGE may retreat to approximately $0.06. If this target is reached, it would mean an additional 66% decline from current levels. Even if this scenario does not occur, the $0.20 resistance level will be a critical threshold for upward movements.

Institutional Investor Behavior and Market Sentiment

In the shadow of the Musk-Trump clash, a general risk-off sentiment has dominated the crypto market. Not only Dogecoin but also mainstream cryptocurrencies like Bitcoin and Ethereum turned red and lost value during this period. The simultaneous rise of trade war concerns and weakening macroeconomic indicators prompted investors to adopt a cautious stance.

Specifically for Dogecoin, institutional investor interest has already been largely limited and speculative. This latest tension may cause the few large-scale investors (whales) to act more cautiously. After the conflict with Trump, Musk’s withdrawal of support for Dogecoin significantly negatively impacted market sentiment. Market sentiment has also turned negative on social media; the uncertainty about Musk’s next move and Trump’s anti-crypto rhetoric are causing unease within the Dogecoin community.

Analysts suggest that Musk’s reduced influence may decrease social media-driven demand for Dogecoin and lead investors to reevaluate their DOGE positions. In an environment where technical indicators point to deeper corrections, analysts note that there may be an increase in profit-taking and stop-loss orders among short-term investors.

Conclusion and Evaluation

The recent wave of decline in Dogecoin has shown that the Elon Musk – Donald Trump conflict has had a tangible impact on the cryptocurrency. This situation demonstrates how sensitive crypto assets can be to external political and social developments. The weak technical outlook and negative market sentiment indicate that downside risks for Dogecoin will remain high in the short term. Experts recommend closely monitoring critical support points and especially applying disciplined risk management during this uncertain period. In this increasingly volatile process of the cryptocurrency market, investors are advised to stay alert to sudden news and, if necessary, reduce positions and act cautiously. While it remains uncertain how the Musk-Trump tension will evolve, Dogecoin investors will closely follow the developments.

This news bulletin does not constitute investment advice.

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