- Musk’s past endorsements significantly boosted Dogecoin, but his reduced backing now fuels bearish sentiment.
- Future price hinges on Musk’s statements and market strength, highlighting crypto’s social media vulnerability.
Dogecoin fell roughly 7 percent on June 6 after President Trump and Elon Musk escalated a public dispute. The price dropped to $0.17, following a bear flag pattern that suggests a deeper decline to $0.06.
The trouble began on June 5, when Musk and Trump traded sharp comments on social media. Musk left his role at the Department of Government Efficiency—or “DOGE”—while Trump threatened to cut Musk’s government contracts. In response, Musk called Trump’s new spending plan the “Big Ugly Bill” and backed calls for impeachment. Consequently, the feud shook confidence in Dogecoin.
The Big Ugly Bill will INCREASE the deficit to $2.5 trillion! https://t.co/jEMS6coT3V
— Elon Musk (@elonmusk) June 5, 2025
Trading data shows DOGE down 14 percent in seven days, extending a three-week slide to 28 percent. Moreover, bearish sentiment worsened when Musk blamed Trump for losing the 2024 election without his support. Consequently, investors began to doubt whether Musk would continue to boost Dogecoin’s profile.
Historically, Musk’s posts have moved Dogecoin price. In 2022, the token jumped more than 25 percent in a single day once Tesla began accepting DOGE for merchandise. Similarly, in 2023, Dogecoin surged 30 percent after Musk changed Twitter’s logo to the Shiba Inu dog. Then, Dogecoin again rose when Trump won the 2024 presidential race, a victory that had Musk’s backing.
However, the current conflict has triggered a broader sell-off. Traders now fear that Musk’s reduced support will sap Dogecoin’s speculative appeal. Therefore, more selling pressure could follow.
Technically, the bear flag pattern forms when price briefly rallies within a downward channel. If the flag breaks below its lower trend line, a swift drop often follows. In this case, a 66 percent fall would push Dogecoin toward $0.06. That level lies near support from early 2024 trading ranges.
Meanwhile, other coins have also declined. Bitcoin and Ethereum slipped as sentiment turned grim. As a result, crypto investors grew cautious across the board. In addition, on-chain indicators show lower trading volumes, which often precede larger moves.
Looking ahead, Dogecoin’s path depends on two factors: Musk’s next public statements and overall market strength. If Musk resumes positive comments about Dogecoin, some buyers may return. Conversely, if the feud deepens, Dogecoin could face more downward pressure. Either way, this episode underscores how social media drama can translate into real losses.
Investors should watch for any shift in Musk’s support. In turn, they might also track the broader crypto market. Finally, even when sharp moves occur, Dogecoin has shown resilience over longer spans. Nonetheless, for now, the token trades under notable strain.
Dogecoin (DOGE) is trading at $0.17812 USD, marking a daily gain of +4.08%. This upward movement follows a steep weekly correction of −17.17%, highlighting the token’s high volatility and ongoing market recalibration.
On the monthly chart, DOGE has gained a modest +3.33%, yet it remains in a deep drawdown over the medium term, with losses of −60.74% in the last six months and −43.57% year-to-date.
Technically, Dogecoin is trading below its 23.6% Fibonacci retracement level and still under key moving averages. After hitting a recent low of $0.1687, DOGE is now consolidating and attempting a short-term reversal.
ETHNews analysts are eyeing a potential retest of the $0.19–$0.21 range, especially if broader crypto sentiment turns bullish. However, failure to maintain momentum may see it fall back to the $0.165–$0.160 support band.
On the ecosystem front, Coinbase recently launched wrapped Dogecoin (cbDOGE) on its Ethereum Layer 2 network, Base, allowing for DOGE integration into DeFi protocols. This development saw users mint over 10.4 million cbDOGE, worth nearly $1.9 million, signaling renewed developer and community interest in making Dogecoin more interoperable within the broader crypto ecosystem.
