The once-enthusiastic trading community around Dogecoin has been caught off guard by an unexpected development: a personal feud between two prominent supporters of the token, Elon Musk and former U.S. President Donald Trump.
As insults flew on platforms like X and Truth Social, new concerns about regulations and politics emerged, diminishing risk appetite and causing the DOGE price to fall over 10%, reaching an intraday low around $0.17.
A surge in 24-hour trading volume to around $1.63 billion has led to Dogecoin’s market share shrinking to 0.83% of the total cryptocurrency market, its lowest position in two months.
Musk-Trump Feud Undermines Meme-Coin Enthusiasm
The dispute escalated rapidly over three days. Tensions peaked on Tuesday when Musk criticized Trump’s signature fiscal plan, calling it a “disgusting abomination,” which shocked Republican supporters.
By Thursday, Musk had revived old GOP concerns voiced by Trump about rising deficits, leading Trump to threaten Musk, warning that he might lose his lucrative federal contracts for SpaceX and Tesla.
Supporters from both sides joined in by Friday, amplifying the conflict and demonstrating how quickly their previously strong alliance (Musk had been a frequent guest at the Oval Office just weeks prior) can unravel over significant legislation.
DOGE Price Data Reflects Declining Confidence
The four-hour Bollinger Bands show increased volatility: the DOGE price dropped to the lower band at $0.17 with high trading volume before slightly recovering toward the mid-level.
Additionally, the Relative Strength Index fell into oversold territory last week and is currently around 39.7—a slight uptick that suggests potential buying interest, but not yet a clear signal of a turnaround.
Technical Outlook: DOGE Price Support Holds, But Resistance Persists
From a technical perspective, Dogecoin is forming a fragile support level between $0.1670 and $0.1700 after dropping about 35% from its peak in early May.
Today’s slight recovery settled the price at $0.179, yet the token is still below a significant resistance area ranging from $0.1797 to $0.1850, which corresponds with the Fib 0.618 retracement and a series of negative moving averages: the 20-day EMA at $0.2016, 50-day at $0.2069, and 100-day at $0.2011.
For a genuine shift in trend, the DOGE price must close above the 20-day EMA; otherwise, any upward movements may be viewed as short-lived rather than a true change in direction. If this hurdle isn’t cleared, attention may shift back to the support levels.
A consistent drop below $0.1670 could bring the Fib 0.786 level down to $0.1576 into play, with limited chart structure until the early-April low around $0.13, which could see another 30% loss in the DOGE price if bearish trends accelerate.
What Might Influence Dogecoin’s Next Movement
In the short term, news sentiment may have as much impact as traditional price charts.
A public resolution between Musk and Trump, or even a new meme-worthy endorsement from Musk, could reenergize retail interest and push the DOGE price above $0.1850, potentially steering it toward $0.20 and the 20 to 100-day EMAs.
On the flip side, if the feud worsens, alongside new regulatory concerns or shifts in the broader cryptocurrency market, sellers could challenge dip-buyers’ resolve once more. At this moment, Dogecoin finds itself at a pivotal point: the fundamentals lean bearish while momentum indicators suggest possible recovery.
Traders looking for short-term moves might aim to take long positions around $0.1850. However, given the unstable conditions, having tight stop-loss orders below $0.1700 is crucial. Swing traders might prefer to wait for a daily closing above $0.20 to confirm a trend reversal, or consider accumulating positions if the DOGE price drops to around $0.1576, where the risk-reward ratio improves significantly.
Until one of these decisive events occurs, maintaining patience and clearly defined risk strategies appears to be the most sensible approach.
The above article is a summary of Dogecoin price predictions during the Musk-Trump clash that impacts market sentiment.
