In recent months, Dogecoin’s price has experienced a sharp decline, and this trend may continue as an unusual death cross pattern is on the horizon.
On Sunday, the Dogecoin (DOGE) token reached a low of $0.019, its lowest value since November 7 of last year, reflecting a more than 60% drop from its peak in November.
The decline of Dogecoin resembles the downturn seen in other meme coins, many of which have also registered significant losses recently. Prominent tokens like Shiba Inu, Pepe, and Dogwifhat have all experienced reductions of over 50%.
This downturn is also tied to the scrutiny surrounding Elon Musk, an influential advocate of the memecoin, who has been under considerable pressure this year. Bloomberg data indicates that Musk’s net worth has fallen by $103 billion this year, bringing his total wealth down to $330 billion.
Recent analyses suggest that Donald Trump is beginning to push back against some of Musk’s actions. The New York Times reports a heated conversation between Musk and cabinet members, including Marco Rubio, during a tense meeting. These discussions led Trump to impose restrictions on Musk, who is in charge of the Department of Government Efficiency, more commonly referred to as DOGE.
As a result, the declining stock price of Tesla, coupled with rising tensions between Musk and Trump, raises the possibility of Musk departing from the department. Kalshi data reflects a 54% chance that he will exit before July 2026.
Since its launch in 2013, Dogecoin gained popularity as a meme coin in 2021, largely driven by Musk’s tweets. Therefore, Musk’s potential departure from DOGE might create psychological effects that could further propel declines.
Analysis of Dogecoin Prices
The daily chart indicates that DOGE’s price continues to be on a marked downtrend, with investors remaining cautiously distant. DOGE is approaching the creation of a death cross pattern, which happens when the 200-day and 50-day Exponential Moving Averages intersect. The previous death cross for the coin occurred in July 2024, leading to a subsequent 40% decrease.
Dogecoin’s price has fallen below the 61.8% Fibonacci Retracement level at $0.2360, underlining the prevailing bearish sentiment. Moreover, both the MACD and the Relative Strength Index are still declining as sellers target the next vital support level at $0.1680, representing the 78.6% retracement point. A drop below this threshold could suggest a further decline to $0.80, which would mark a 60% decrease from the current price.
