Dogecoin’s once-upbeat trading crowd has been blindsided by an unlikely catalyst: an increasingly personal clash between two of the token’s highest-profile enthusiasts, Elon Musk and U.S. President Donald Trump.
Such an obvious lie. So sad. https://t.co/sOu9vqMVfX
— Elon Musk (@elonmusk) June 5, 2025
As their barbs ricocheted across X and Truth Social in recent days, fresh regulatory and political worries surfaced, draining risk appetite and pushing the DOGE price more than 10% lower to an intraday trough near $0.17.
With a jump in 24-hour turnover to about $1.63 billion, that slide has cut Dogecoin’s market share to 0.83% of total crypto value, its weakest dominance reading in two months.
Musk-Trump Feud Saps Meme-Coin Morale
The feud mushroomed over just three days. Tensions flared Tuesday when Musk publicly branded Trump’s signature “big, beautiful” tax-and-spending package a “disgusting abomination,” stunning Republican allies.
I’m sorry, but I just can’t stand it anymore.
This massive, outrageous, pork-filled Congressional spending bill is a disgusting abomination.
Shame on those who voted for it: you know you did wrong. You know it.— Elon Musk (@elonmusk) June 3, 2025
By Thursday, the billionaire had dredged up years-old GOP warnings from Trump about ballooning deficits, prompting Trump to threaten Musk with losing his lucrative federal contracts for SpaceX and Tesla.
Allies on both sides piled in through Friday, amplifying the spat and highlighting how quickly a long-standing alliance (Musk was an Oval Office regular only weeks ago) can curdle when big-ticket legislation is at stake.
DOGE Price On-Chain and Market Data Point to Waning Confidence
Blockchain analytics show a sharp uptick in coins moving from long-term wallets to exchanges, echoing the bearish narrative in derivatives desks where funding rates have drifted negative.
Four-hour Bollinger Bands confirm heightened volatility: the DOGE price kissed the lower band at $0.17 on heavy volume before clawing back toward the midline.
Meanwhile, the Relative Strength Index sank into oversold territory last week and now hovers at 39.7—a tentative uptick that hints at bargain hunting but falls short of signaling a decisive reversal.
Technical Picture: DOGE Price Support Holds but Resistance Looms
Technically, Dogecoin continues to build a fragile base on the $0.1670 to $0.1700 horizontal support level after retracing roughly 35 % from its early-May peak.
Today’s rebound left spot at $0.179, yet the token still trades beneath a formidable confluence zone at $0.1797 to $0.1850, which aligns with the Fib 0.618 retracement and a stack of bearish moving averages: a 20-day EMA at $0.2016, 50-day at $0.2069, and 100-day at $0.2011.
Unless the DOGE price can close a daily candle above the 20-day EMA, rallies will likely be dismissed as dead-cat bounces rather than a bona fide trend change. Failure to conquer that ceiling would refocus attention on the springboard support.
A sustained break below $0.1670 would expose the Fib 0.786 level at $0.1576, with little chart structure until the early-April swing low around $0.13, an air pocket that could see another 30% shaved off the DOGE price if bearish momentum accelerates.
What Could Drive Dogecoin’s Next Move
In the immediate term, sentiment headlines may matter as much as candlesticks.
A public reconciliation between Musk and Trump, or even a fresh meme-worthy endorsement tweet, could reignite retail appetite and push the DOGE price through $0.1850, opening the way toward $0.20 and the clustered 20 to 100-day EMAs.
Conversely, any escalation in the feud, fresh regulatory chatter, or broader risk-off moves in crypto could see sellers test dip-buyers’ patience yet again. For now, Dogecoin sits on a knife-edge: fundamentals lean bearish while momentum oscillators hint at recovery potential.
Traders with a short time frame may scalp long positions toward $0.1850, but given the precarious backdrop, tight stops below $0.1700 are essential. Swing traders might instead await a daily close above $0.20 to confirm trend reversal, or look to accumulate only if the DOGE price washes out toward $0.1576, where risk-reward improves dramatically.
Until one of those decisive signals emerges, patience or strictly defined risk appears to be the most prudent course.
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