DOGE Slides Sharply as Trump-Musk Rift Sparks Risk-Off Mood in Crypto
Dogecoin (DOGE) fell as much as 12% on Friday, leading declines in the memecoin sector as heightened political friction between former U.S. President Donald Trump and Tesla CEO Elon Musk spooked retail traders and intensified market risk aversion.
The drop came as Musk warned of a looming U.S. recession triggered by Trump’s new tariff proposals, a forecast that rattled markets already sensitive to macroeconomic headwinds. DOGE, often viewed as a sentiment-driven asset due to Musk’s historic endorsements, saw accelerated liquidations following the tech billionaire’s latest comments on social media.
Technical Pressure Builds
DOGE broke below key intraday support at $0.175, sparking further downside momentum. Price briefly touched $0.168 before recovering marginally to hover near $0.171 in the Asian afternoon session. Trading volume spiked by over 40%, suggesting panic-driven exits rather than structural reallocations.
Narrative Fallout
The feud also cast a shadow over DOGE’s memetic utility narrative, which has long been tethered to Musk’s online persona. Traders are now questioning whether the token can maintain relevance amid waning enthusiasm and leadership disarray. The lack of any official clarification from Musk added to the speculative uncertainty.
Broader Impact
The selloff in DOGE echoed across related assets, with Shiba Inu (SHIB) and Pepe (PEPE) each dropping over 6%. Analysts note that the Trump-Musk drama may be undermining retail confidence at a time when institutional appetite is rotating back into Bitcoin and high-cap altcoins.
“This is more than just a celebrity feud — it’s a sentiment shock for the memecoin space,” said an analyst at CryptoQuant. “DOGE is a bellwether for risk appetite, and right now, the appetite’s clearly fading.”
