Trump – Musk "Face-off": Dogecoin Takes a Hit, Cryptocurrency Market in Turmoil

The ongoing clash between two influential figures—President Donald Trump and SpaceX CEO Elon Musk—is weighing on the cryptocurrency market. Although the discord seems to have subsided somewhat, it is still a topic of interest, with fewer conflicts this week than last week. The impact of their conflict has spread throughout the crypto space, even spreading to its more speculative corners. In particular, meme coins are feeling the pressure. Dogecoin (DOGE), a prominent coin in that category, has fallen nearly 2% in the last 24 hours and more than 5% in the last seven days. The role of Elon Musk in the recent rise and fall of Dogecoin Musk has long been known as the "Dogefather" due to his support and frequent mentions of this token in public. His tweets and public comments often cause the price of DOGE to soar, but this time, a surprising statement from Elon Musk had the opposite effect, causing Dogecoin to fall sharply. A thrilling moment was his appointment as head of the Government Efficiency Ministry (DOGE), which many see as a gentle recognition of cryptocurrency. This appointment has attracted attention and temporarily renewed interest in the tokens. However, Musk has now announced the closure of the division, claiming that their goal has been achieved. This move, while seemingly symbolic, has tempered the enthusiasm that often favors Dogecoin's speculative value. Without additional sparks from Musk, the momentum around the token seems to have slowed down significantly. Market fluctuations reflect changes in sentiment. The price of Dogecoin has risen over the past few weeks. But on Thursday, from 16:00 to 20:00 UTC, everything changed rapidly. In just a few hours, the price fell from around $0.19 to about $0.16 — a drop of over 15%. This sharp decline triggered a significant sell-off as investors rushed to exit. That rapid drop marked a break below the upward trendline. Over the weekend, the crypto king tried to recover but encountered strong resistance near the 100-day (SMA) Simple Moving Average. After approaching this level, the price was definitively rejected. This rejection is not merely due to the 100-day (SMA) Simple Moving Average but also coincides with the horizontal resistance zone from the previous price action. Together, they form a strong supply zone where selling pressure has prevailed. If the downtrend continues, lower prices may still be ahead. Meanwhile, the (RSI) Relative Strength Index is currently at around 39.49, with a signal line near 42.17. This puts it in the lower range of the chart, reinforcing the current bearish momentum. Despite a slight rebound in the RSI—indicating a brief pause in selling pressure—the overall trend remains negative. The RSI remains below both the signal line and the 50 neutral level, indicating that buyers are yet to regain control. Until the RSI crosses the 50 level and the price breaks through the key resistance levels, the overall outlook for Dogecoin remains skewed to the downside.

Dogecoin is at a crossroads with increasingly bearish signals. The price of DOGE is currently trading around $0.18 at the time of writing. For the bulls to regain control, the price must surpass the 100-day SMA, the trend line, and finally the 50-day SMA. If this does not happen, the price of Dogecoin may continue to fall for a while. In addition to technical indicators, market sentiment also plays an important role in the direction of the DOGE price. For the momentum to return in their favor, buyers will likely need a meaningful shift in the crypto space or political environment The ongoing clash between Trump and Musk has only added to the uncertainty, dragging down the overall market confidence. A solution could ease stress, while a broader rise in the crypto market could help reverse the current sentiment. Until then, any bullish move may only be short-lived.