Dogecoin price has crashed in the past few months, and this trend may continue as the rare death cross pattern nears.
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.
Dogecoin’s crash has mirrored 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%.
It has also dropped as Elon Musk, a key backer for the memecoin, has come under intense pressure this year. Bloomberg data shows that Musk’s net worth has dropped by $103 billion this year, bringing his worth to $330 billion.
The latest reporting is that Donald Trump is starting to push back on some of Elon Musk’s actions. According to the New York Times, Musk crashed with cabinet officials like Marco Rubio in a tense cabinet meeting. These discussions pushed Trump to rein on Musk, who leads the Department of Government Efficiency or DOGE.
Therefore, the tumbling Tesla stock price and the new tensions between Musk and Trump mean that he may leave the department. Kalshi data shows that there is now a 54% chance that he will exit before July 2026.
Established in 2013, Dogecoin became a popular meme coin in 2021 mostly because of Musk’s Tweets. As such, his DOGE exit would have some psychological effects leading to more downside.
Dogecoin price analysis
The daily chart shows that the DOGE price continued its strong downtrend as investors remained in the sidelines. DOGE is about to form a death cross pattern, which happens when the 200-day and 50-day Exponential Moving Averages cross each other. The last time the coin formed a death cross was in July 2024, and the coin dropped by 40% after that.
Dogecoin price has moved below the 61.8% Fibonacci Retracement at $0.2360, a sign that bears are in control. Also, the MACD and the Relative Strength Index have continued falling as sellers target the next key point at $0.1680, the 78.6% retracement point. A move below that level will point to a further decline to $0.80, 60% below the current level.
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