Dogecoin (DOGE) price dropped about 7% on June 6 to continue the broader crypto market sell-off as public spat between US President Donald Trump and his most celebrated backer, Elon Musk, escalated.

The bear flag pattern on the weekly chart hints at a potential 66% drop to $0.06, while technical indicators suggest more downside pressure on the immediate term.

Dogecoin flips bearish as Trump threatens to cancel Musk’s subsidies

Data from Cointelegraph Markets Pro and TradingView shows Dogecoin trading hands at $0.17 at the time of writing, down 14% over the last seven days.

The weekly candle chart shows that DOGE price is extending the three-week-long slide to 28%, and the coin could slide further as billionaire Musk escalated his public spat with Trump.

The fallout, which has been sparring in recent days after Musk’s official departure from the Department of Government Efficiency (DOGE) was announced, escalated on June 5 with Trump threatening to terminate Musk’s government subsidies and contracts, potentially saving “Billions and Billions of dollars.”

Musk responded on X, claiming Trump would have lost the 2024 presidential election without his support. He called Trump’s recent spending bill the “Big Ugly Bill” and backed calls for his impeachment.

The Big Ugly Bill will INCREASE the deficit to $2.5 trillion! https://t.co/jEMS6coT3V

Musk, a vocal Dogecoin supporter, has historically influenced its price through endorsements, such as tweets or Tesla’s partial acceptance of DOGE for payments. Dogecoin jumped more than 25% in a single day in 2022 after Tesla began accepting DOGE for selected merchandise.

In 2023, DOGE price spiked more than 30% within 24 hours after Musk replaced the bluebird logo on the Twitter (now X) website with an image of a shiba inu, the memecoin’s canine logo.

Dogecoin again soared alongside other cryptocurrencies after Trump’s election victory in November 2024, following a campaign that Musk and the crypto industry heavily backed.

The escalating conflict has led to a broader market sell-off. Investors now fear that reduced backing from Musk could dampen crypto sentiment and DOGE’s speculative appeal, pushing its price down.

Dogecoin bear flag targets below $0.1

On the weekly chart, DOGE has confirmed a bear flag pattern after dropping below the lower boundary of the flag at $0.20.

Dogecoin’s price is currently testing the support level at $0.15, aligning with the 100-weekly simple moving average (SMA).

Key support levels to watch on the downside are the 200-day SMA at $0.14 and the April 7 low at $0.13. A high volume move below these support levels could accelerate a sell-off toward the technical target of the prevailing chart pattern at $0.06, or a 66% decline from the current level.

The relative strength index (RSI) is below the midline and has dropped from 52 to 43 over the last three weeks, indicating an increasing bearish momentum. The RSI’s value of 43 suggests that there is more room for the downside before oversold conditions set in again.

As Cointelegraph reported, a sharp downturn from the 20-day EMA ($0.20), which aligns with the flag’s lower trendline as shown in the chart above, could increase the risk of a deeper correction to $0.14 or lower.