- Elon Musk’s exit from D.O.G.E. and rising market uncertainty have pushed Dogecoin to a critical $0.20 support level.
- Technical signals and declining bullish sentiment suggest a potential deeper correction if this level fails to hold.
Dogecoin (DOGE) is facing its most critical test in weeks as Elon Musk wraps up his final day as a Special Government Employee, helming the Department of Government Efficiency (D.O.G.E.). Musk’s 130-day stint, often credited with fueling Dogecoin’s bullish narrative, ends Friday with a meeting alongside former President Donald Trump at the White House.
As Musk’s government role concludes, Dogecoin has slumped to a key support zone, risking a complete reversal of early May’s gains. At press time, DOGE trades at $0.2085, following a sharp 7% drop in the past 24 hours. The meme coin is now clinging to the $0.20 support level, which aligns with the 50-day Exponential Moving Average (EMA) at $0.2061.
Also read: $11.5B Crypto Options Expiry Today: Will Bitcoin and Ethereum Prices Drop Further?
Technical indicators paint a grim picture. The Moving Average Convergence Divergence (MACD) shows a bearish crossover with increasing negative momentum. Meanwhile, the Relative Strength Index (RSI) has dipped to 46, signaling ongoing selling pressure with room for further downside before hitting oversold conditions.
This downturn comes amid broader market uncertainty, triggered in part by tariff speculation and a cooling crypto sentiment. According to Coinglass, long liquidations surged to $20 million in the last 24 hours—vastly outpacing short liquidations at just $532,000. Open Interest (OI) has also dropped 10% to $2.44 billion, underscoring a dramatic decline in bullish conviction.
If DOGE fails to hold the $0.20 line, the next support lies at $0.1688, with a possible deeper dive to $0.1421. A decisive close below $0.20 could confirm a bearish breakdown, inviting more short positions. However, should Dogecoin rebound and reclaim the 200-day EMA at $0.2177, the downtrend may be invalidated, setting the stage for a rally toward $0.25 or even $0.2846.
As the “Dogefather” exits the public stage, Dogecoin’s future now hinges on its ability to weather technical and sentimental headwinds without his influence.
