Dogecoin Crashes 12% as Trump-Musk Feud Escalates | Latest

Dogecoin Crashes 12% as Trump-Musk Feud Escalates: Market Turmoil and Meme Coin Vulnerability

A Political Spat Sends Shockwaves Through Crypto Markets

Dogecoin (DOGE), the once-beloved meme coin, plunged 12.5% in just 24 hours, dropping from $0.193 to $0.169, as tensions between former U.S. President Donald Trump and billionaire Elon Musk reached a boiling point. The dramatic sell-off, marked by a trading volume spike of over 1 billion DOGE—five times the daily average—signaled institutional panic rather than retail investor flight.

The feud, which escalated on June 5, saw Trump label Musk "CRAZY" and threaten to cancel government contracts with his companies, including SpaceX and Tesla. Musk retaliated by announcing SpaceX would "begin decommissioning its Dragon spacecraft immediately," a critical vehicle for U.S. space missions. The clash sent shockwaves through markets, with Tesla shares also tumbling 14% in a single day.

Why Dogecoin Is the Unlikely Casualty

Dogecoin’s price has long been tethered to Musk’s public statements. His past endorsements—such as Tesla accepting DOGE payments or replacing Twitter’s logo with the Shiba Inu—have triggered rallies exceeding 30% in a single day. However, his political fallout with Trump has now turned into a liability.

Analysts note that DOGE, lacking intrinsic value, is hypersensitive to sentiment shifts. "This isn’t just about Musk’s influence—it’s about the fragility of meme coins in high-stakes environments," said Shaurya Malwa of CoinDesk. "When institutional players see uncertainty, they dump first and ask questions later".

Technical Breakdown: Key Levels to Watch

The sell-off breached critical support at $0.194, with resistance now firming at $0.190. Traders are eyeing the next support zone at $0.169–$0.170, but further downside risks loom if this level fails. FxPro’s wave analysis suggests a bearish target of $0.1600, citing a breakdown of the daily uptrend channel from March.

Broader Market Impact

The Trump-Musk drama has amplified existing crypto market jitters. Global trade tensions and risk-off sentiment have pressured speculative assets, with other meme coins like Pepe (PEPE) and Bonk (BONK) also dropping 6% or more. Meanwhile, Bitcoin’s struggle to hold $70,000 has left altcoins vulnerable to deeper corrections.

What’s Next for DOGE?

Short-term recovery hinges on whether Musk’s influence can outweigh political risks. Some traders speculate that if Musk re-engages with DOGE—perhaps through a new endorsement—the coin could rebound. However, if the feud worsens, further declines are likely.

Longer-term, Dogecoin’s fate depends on broader adoption. While its community remains active, analysts caution that without utility beyond hype, DOGE could face stagnation as newer meme coins emerge.

Share Your Thoughts

Will Dogecoin recover from this crash, or is the meme coin era fading? Share your views on our X.

Disclaimer: The information provided in this section is for reference only and does not represent any investment advice or the official views of FameEX.

Sources:

• CoinDesk: "Dogecoin Drops as Much as 12% Amid Trump-Musk Drama"

• CNBC: "Musk Spat With Trump and Exit From DOGE Bad for Dogecoin"

• Binance Square: [Title not provided in search results]

• FX Leaders: "Trump-Musk Battle Shakes Crypto: Memecoin DOGE Drops 10%"