Dogecoin Price Analysis

Dogecoin price has crashed in the past few months, and this trend may continue as the rare death cross pattern nears.

Recent Performance

Dogecoin (DOGE) token retreated to a low of $0.019 on Sunday, its lowest level since November 7 last year. It has plunged by over 60% from its highest level in November.

This crash mirrors the performance of other meme coins, most of which have plunged in the past few months. Popular tokens like Shiba Inu, Pepe, and Dogwifhat are down by over 50%.

Elon Musk’s Influence

The decline also coincides with intensified pressure on Elon Musk, a key backer for the memecoin. Bloomberg data indicates Musk’s net worth has dropped by $103 billion this year, reducing his wealth to $330 billion.

Recent reports suggest that Donald Trump is pushing back on some of Musk’s actions. According to the New York Times, Musk had a tense cabinet meeting with officials like Marco Rubio. This conflict led Trump to consider curtailing Musk’s influence as head of the Department of Government Efficiency (DOGE).

The tumbling Tesla stock price and rising tensions between Musk and Trump raise the likelihood that Musk may exit before July 2026, with Kalshi data showing a 54% chance of this happening.

Since its establishment in 2013, Dogecoin gained popularity in 2021 primarily due to Musk’s tweets, so his potential departure could psychologically impact the coin, leading to further declines.

Price Analysis

Technical Trends

The daily chart reveals that DOGE continues in a strong downtrend as investors remain sidelined. DOGE is nearing a death cross pattern, occurring when the 200-day and 50-day Exponential Moving Averages intersect. The last such event occurred in July 2024, followed by a 40% decline.

Currently, Dogecoin price has moved below the 61.8% Fibonacci Retracement at $0.2360, indicating bears are in control. The MACD and the Relative Strength Index continue to decline, with sellers now targeting the next key point at $0.1680, the 78.6% retracement point. A dip below this level may suggest a further decline to $0.80, which would be 60% lower than the current level.

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