Recently, Dogecoin (DOGE) price has been continuously declining, currently testing a key technical support level. Meanwhile, the White House commented on the policy differences between Elon Musk and the government, drawing market attention. This article will delve into DOGE's technical performance and potential macro factors affecting its future trend.
White House Acknowledges Elon Musk's Right to Speak for His Company Despite Policy Differences
The White House confirmed that Elon Musk has the right to represent his company's interests, despite open differences with President Donald Trump. Previously, Musk had just resigned from the Government Efficiency Department (DOGE) and subsequently lobbied against federal budget and tax legislation.
Press Secretary Karoline Leavitt described this divergence as a natural separation of roles: "As a businessman, [Musk] has the right to speak for his company. But as President, President Trump has a responsibility to fight for the nation." These remarks were made during a Fox News program discussing the escalating tensions between tech giants and the government.
The rift emerged a few days after a seemingly cordial Oval Office meeting where Musk thanked Trump for his efforts to reduce government waste. Subsequently, they accused each other, with Musk suggesting Trump's election prospects depend on his support, while the president accused Musk of political manipulation for his own interests.
Dogecoin Approaches Critical Support Level Amid Market Decline
Dogecoin price is on the edge of a decisive collapse, currently testing a critical technical level intersection. The meme cryptocurrency closed at $0.17551, barely maintaining its position above the February trend line and the 78.6% Fibonacci retracement of the 2024 rally.
A six-month descending channel currently dominates DOGE's price movement, with Thursday's 11% drop breaking below the $0.18 midline. The token is facing increasing pressure as it retests a multi-month trend line coinciding with the $0.167 Fibonacci level—a breakdown here could trigger a chain liquidation until the historical trend line from May 2021 provides substantial support.
Market structure indicates that bears will continue to control the situation until DOGE decisively recovers above $0.18. Recent resistance near the upper channel at $0.2540 reinforces this technical narrative, with the May 8th breakthrough attempt now potentially evolving into a bull trap.
Dogecoin Price May Plummet 66% to $0.06, Analysts Warn of Increased Market Pressure from Musk-Trump Public Dispute
As the public dispute between Elon Musk and Donald Trump escalates, Dogecoin price faces significant pressure. The cryptocurrency has dropped 7% in the past 24 hours, with a weekly decline of 14% and a cumulative 28% drop over three weeks. Analysts warn that continued bearish momentum could lead to a further 66% plunge to $0.06.
The conflict intensified sharply after Musk's resignation from the Government Efficiency Department on June 5th. Trump threatened to cancel Musk's government subsidies, prompting Musk's retaliation on the X platform (formerly Twitter). Musk accused Trump of needing his support to win the 2024 election and criticized recent spending bills as "ugly massive spending".
Musk's enormous influence on Dogecoin price is exacerbating market volatility. Historically, his social media endorsements and Tesla's cryptocurrency integration have driven DOGE's rallies. The current political dispute not only removes this bullish catalyst but also adds macroeconomic uncertainty.
Goldman Sachs Downgrades Tesla Target Price, Market Volatility Intensifies
Tesla stock faces a new round of scrutiny as Goldman Sachs lowered its target price following CEO Musk's political controversy. Although the electric vehicle manufacturer's stock briefly stabilized above $300, analysts continue to warn of valuation risks.
As Goldman Sachs revised its outlook, Tesla's market value experienced violent fluctuations—first gaining momentum from Musk's exit from Trump-related crypto projects, then evaporating $152 billion after his criticism of the former president. Market observers are divided into two camps: optimistic tech enthusiasts and traditional analysts expecting a correction.
Musk-Trump Public Conflict Triggers Cryptocurrency and Stock Market Tremors
The public conflict between former US President Trump and Tesla CEO Musk has impacted financial markets, particularly affecting crypto assets and stocks of companies associated with both parties. The confrontation originated from a White House tax proposal potentially reducing Tesla's electric vehicle subsidies, prompting Musk's retaliation and Trump's refusal to compromise.
Dogecoin, often endorsed by Musk, plummeted 10% in a selling wave. The SpaceX-related retail-oriented fund Destiny TECH100 Inc. plunged 13%. Musk's business portfolio's leveraged positions dropped 25% overall, with Trump's media and tech group also suffering losses. This panic selling spread to any assets related to the two public figures.
Market analysts noted that speculative assets were more significantly impacted compared to traditional indices. During the same period, the S&P 500 rose 1.5%, with the FANG index (excluding Tesla) reaching a historic high. Strong employment data boosted government bond yields, further withdrawing funds from high-risk investments.
Musk-Trump Public Dispute Impacts Dogecoin and SpaceX-Related Assets
The public dispute between Elon Musk and former US President Donald Trump has impacted assets related to these two public figures. The meme cryptocurrency Dogecoin, frequently endorsed by Musk, plummeted 10% on Thursday. Similarly, the listed fund related to Musk's space business Spacex also plunged 13%.
This selling wave highlights the risks of "celebrity-driven investment". Retail traders increasingly flock to crypto tokens, ETFs, and other financial products related to billionaires like Musk and Trump, often overlooking traditional fundamental analysis. This speculative frenzy makes investment portfolios vulnerable to sudden changes in public sentiment.
