The conflict between Donald Trump and Elon Musk negatively impacted Dogecoin's price, leading to a 7% drop. The current analysis indicates potential further decreases.
Escalation of Trump-Musk Conflict
The feud between Elon Musk and Donald Trump escalated on June 5, adversely affecting Dogecoin. After Musk left his position in the department, Trump threatened to cut off government subsidies, potentially saving 'billions of dollars.' Musk responded on X, stating Trump would not win the 2024 elections without his support.
Technical Analysis of Dogecoin
Dogecoin confirmed a bear flag pattern on the weekly chart after dropping below the $0.20 mark. Current prices are testing the support level at $0.15, aligning with the 100-weekly simple moving average. A move below key support levels could lead to a sharp sell-off towards the $0.06 target.
Potential Further Decline Scenarios
If DOGE continues to slide, key support levels include the 200-day SMA at $0.14 and April 7 low at $0.13. A move below these levels increases the risk of a deeper correction to $0.06, representing a 66% decline from the current level.
The ongoing conflict between Trump and Musk continues to create uncertainty in the market, prompting concerns among investors regarding the potential decrease in Dogecoin prices.
