The price of Dogecoin dropped 7% to $0.17 after the public dispute between Donald Trump and Elon Musk, with the downward trend forecasted to pull the price down to $0.06.
Musk's breakup with Trump is not good for Dogecoin
Dogecoin fell 14% over 7 days and is in its third consecutive week of decline due to escalating tensions between Elon Musk and Donald Trump.
The conflict erupted when Trump threatened to cut government subsidies for Musk, while Musk retorted that Trump would lose the 2024 election without his support.
Elon Musk has repeatedly positively influenced Dogecoin's price, such as when Tesla accepted DOGE or changed the Twitter logo to the Shiba Inu dog.
DOGE also surged after Trump's victory in the 2024 election, thanks to support from Musk and the cryptocurrency sector.
However, the current conflict between Musk and Trump is causing investor concern, leading to a wave of sell-offs and diminishing the appeal of DOGE.
The bearish flag target for DOGE is below $0.1
Dogecoin has broken the bearish flag pattern and is currently testing support at $0.15, near the 100-week SMA.
If it loses key support levels like $0.14 and $0.13, the price could sharply drop to the technical target of $0.06 (a 66% decrease).
RSI decreased from 52 to 43, indicating that the downward momentum still has room before reaching the oversold zone.
