Musk’s Trump Feud Sparks Dogecoin Plummet: Is His Meme Coin Magic Fading?

MIAMI, June 6, 2025 - Dogecoin, the meme cryptocurrency once propelled to fame by Elon Musk’s endorsements, has taken a hit, dropping 7% in the last 24 hours to approximately $0.18 as of June 6, 2025. The sudden decline coincides with an escalating public feud between Musk and President Donald Trump, raising questions about the billionaire’s waning influence over the volatile asset.

Analysts warn that Dogecoin could face a further 66% drop to $0.06 if bearish market trends persist, driven by both technical signals and shaken investor confidence. This development has sparked debates about whether Musk’s ability to sway Dogecoin’s fortunes is diminishing amid his political and business challenges.

Musk’s Historical Boost to Dogecoin

Elon Musk has long been a pivotal figure for Dogecoin, often dubbed its unofficial ambassador. His tweets and public statements have historically triggered massive price surges, with notable spikes in 2021 when he called Dogecoin “the people’s crypto” and announced Tesla’s acceptance of DOGE for merchandise payments.

These actions helped push Dogecoin to an all-time high of $0.73 in May 2021. Tesla’s continued support, including DOGE payments for select products, has kept the coin relevant despite its meme-driven origins. However, the current price drop indicates that Musk's influence may be diminishing as external factors, such as his conflict with Trump, gain prominence.

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The Trump-Musk Feud and Its Fallout

The ongoing conflict between Musk and Trump, centered around Musk’s exit from the Department of Government Efficiency (DOGE), has woken up financial markets. Trump’s public threats to revoke government contracts for Musk’s companies, such as SpaceX, have not only impacted Tesla’s stock, which fell 14% this week, but also rattled Dogecoin investors.

The feud, amplified by heated exchanges on social media, has fueled negative sentiment around assets tied to Musk’s persona. Market analysts note that Dogecoin’s price is particularly sensitive to such developments, given its reliance on hype and community support rather than fundamental utility.

Did You Know?
Dogecoin was created in 2013 by Billy Markus and Jackson Palmer as a lighthearted alternative to Bitcoin, inspired by the popular “Doge” Shiba Inu meme.

Technical Signals Point to Further Risks

From a technical perspective, Dogecoin’s price chart paints a grim picture. The DOGE/USD pair has formed a bear flag pattern, a bearish indicator suggesting a potential drop to $0.06, a level not seen since early 2023. This decrease follows a 14% decline over the past week and a 28% drop over three weeks, reflecting growing market unease.

The combination of technical weakness and external pressures from the Musk-Trump feud has led some analysts to predict a prolonged downturn unless positive catalysts emerge. Investors are now questioning whether Musk’s influence can counteract these bearish trends or if Dogecoin’s rally days are over.

Can Musk Regain His Crypto Crown?

As Dogecoin hovers at $0.18, the crypto community is left wondering whether Musk can restore confidence in the meme coin. His ability to drive market sentiment remains unmatched, but the current political and economic headwinds pose new challenges. Some investors remain optimistic, pointing to Musk’s history of defying expectations, while others see the feud as a sign that his influence over Dogecoin may be fading.

With Tesla’s stock and Dogecoin’s price both under pressure, the coming weeks will be critical in determining whether Musk can reclaim his role as the meme coin’s champion or if Dogecoin is headed for a deeper correction.