Dogecoin burns in Trump-Musk crossfire

June 06, 2025

Reading time: 5 minutes

Trump vs. Musk sends Dogecoin tumbling: Will it survive the fallout?

Key points:

  • Dogecoin plunged over 12% in 24 hours, trading near $0.17, amid a public feud between Elon Musk and Donald Trump.

  • A bear flag breakdown and rising institutional sell pressure now threaten a deeper crash to $0.06, analysts warn.

News -  Dogecoin’s speculative rally may be running out of fuel. The memecoin nosedived over 12% in a single day, as a very public and escalating feud between longtime DOGE advocate Elon Musk and U.S. President Donald Trump dominated headlines. From its weekly high of $0.19, the token slid to $0.16 before stabilizing near $0.17.

The spat began after Musk slammed Trump’s new tax-and-spend bill as a "disgusting abomination" and formally stepped down from his role in the Department of Government Efficiency (DOGE). Trump responded by accusing Musk of betrayal and threatening to cut government contracts with Musk-linked companies, adding fuel to the political fire.

Technical breakdown: Bear flag in play - Beyond the political drama, DOGE’s price action painted a grim picture. Technical analysts confirmed a bear flag breakdown on the weekly chart, a bearish continuation pattern that signals the potential for further losses. Key support zones at $0.16 and $0.15 have already been breached, with current downside targets at $0.14, $0.13, and potentially as low as $0.06.

Trading volume exceeded 1 billion units during the sell-off, signaling institutional distribution, not just retail panic. RSI has dropped to 43, and momentum continues to weaken.

Meme hype fizzles without Musk - Musk's prior tweets and symbolic gestures have repeatedly pumped Dogecoin in the past. From Twitter logo swaps to Tesla merch acceptance, his influence was undeniable. But without Musk’s backing, DOGE lacks strong fundamentals, use cases, or institutional support.

As regulatory scrutiny rises and Trump’s political stance hardens, memecoins like DOGE face an uphill battle to retain relevance. Without a new catalyst, Dogecoin may retrace most of its Musk-era gains.

Watch this zone - If DOGE falls below the $0.13 support, the bearish flag pattern projects a further crash to $0.06, a 66% drawdown that could erase years of speculative growth.

Bitcoin wobbles below $103K as big holders retreat, Trump-Musk feud adds heat

Key points:

  • Bitcoin slipped to $102,178, with analysts predicting a potential drop to $93K-$98K amid a long-term holder sell-off.

  • The Trump-Musk feud, ETF outflows, and fiscal policy fears further dented market confidence.

News - Bitcoin's recent volatility continues to spook the market, with the cryptocurrency trading just above $102,000 following a turbulent week. The downward pressure stems from a mix of long-term holder profit-taking, weakening support from whales, and macro uncertainties, including a growing public spat between Donald Trump and Elon Musk.

Despite accumulation by smaller retail wallets, larger holders have slowed purchases, failing to offset mounting sell pressure. On June 5 alone, long-term holders sold over $1 billion worth of BTC, according to on-chain data. This capitulation coincided with a sharp ETF outflow of $278 million, flipping sentiment on the Crypto Fear & Greed Index from "Greed" to "Fear."

Chart breakdown and trader sentiment - Technical indicators suggest Bitcoin could revisit the $100K support. A breakdown below $102,732 could push the asset toward $98K or even $93K. Traders are eyeing $105.8K as the immediate resistance to reclaim if Bitcoin hopes to avoid deeper losses. However, analysts note the daily RSI is nearing oversold territory, hinting at a potential short-term bounce.

Macro tensions add fuel to the fire - The Trump-Musk standoff has contributed to broader market sell-offs. Trump's threat to cancel Musk's government contracts and Musk’s sharp critiques of U.S. fiscal policy have sparked uncertainty, not just for crypto but also for equities. Musk echoed long-standing Bitcoin maximalist warnings, calling out the $36 trillion U.S. debt and warning of a "potential collapse" in the fiat system.

Why it matters - As investor focus shifts to upcoming U.S. jobs data and inflation signals, BTC remains in a fragile position. If macro conditions worsen and whale accumulation stays muted, Bitcoin may struggle to defend the $100K psychological floor in the days ahead.

Corporate titans double down on Bitcoin: Strategy and Metaplanet expand war chests

Key points:

  • Strategy quadruples offering to $1B via new preferred stock, aiming to buy over 9,600 BTC.

  • Japan's Metaplanet unveils $5.4B equity raise to acquire 210,000 BTC by 2027, targeting 1% of all Bitcoin.

News - Michael Saylor's Strategy has made a bold move by increasing its initial $250 million stock offering to nearly $1 billion. The firm, which already holds the title of the largest corporate Bitcoin holder, plans to use the proceeds to buy more BTC and for general corporate purposes. Strategy will issue over 11.7 million shares of 10% Series A Perpetual Stride Preferred Stock (STRD), with a fixed return but no management fees, targeting institutional investors seeking high yield.

VanEck recently calculated that Strategy’s stock trades at a +112% premium relative to its underlying Bitcoin and software assets, largely due to speculative investor interest and expectations of further accumulation. The company’s latest move continues its trend of leveraging capital markets to boost Bitcoin exposure, raising questions over investor overpayment for indirect BTC exposure.

Meanwhile, across the Pacific, Japan’s Metaplanet is making an even more audacious bet. The Tokyo-listed firm announced a $5.4 billion equity raise, issuing 555 million shares through stock warrants to fund its Bitcoin treasury strategy. Its goal? To hold 210,000 BTC by 2027, around 1% of Bitcoin's total supply.

Metaplanet’s mega-accumulation plan - Previously aiming for 21,000 BTC, Metaplanet has now upped its ambition tenfold. Having already amassed 8,888 BTC, its new 555 Million Plan dwarfs its earlier fundraising and positions it as Asia’s most aggressive Bitcoin accumulator. With 96% of the funds earmarked for direct BTC purchases, Metaplanet is challenging North American firms like Strategy for global dominance in crypto treasuries.

Why this matters - The two firms’ competing megaplans highlight a growing trend: public companies turning to equity markets to convert fiat into crypto reserves. As concerns about fiat currency instability rise, fueled by inflation, debt, and geopolitical tension, Bitcoin is becoming a corporate hedge of choice. But with massive premiums and high stakes, these strategies may also be redefining risk in public equity markets.

Yuga Labs restructures NFT strategy: Moonbirds sales surge, ApeCoin DAO faces shutdown

Key points:

  • Moonbirds NFT sales jumped 2,525% after Yuga Labs sold its IP to Orange Cap Games.

  • Yuga Labs proposed replacing ApeCoin DAO with a new entity, ApeCo, citing governance dysfunction.

News - Moonbirds NFTs have come back to life, just as the ApeCoin DAO may be heading for one.

Ethereum-based NFT collection Moonbirds saw a dramatic 2,525% weekly sales spike, reaching over $2 million in volume after Yuga Labs sold its IP to Orange Cap Games. Transactions surged by 877%, pushing Moonbirds to the 7th spot in weekly NFT rankings and overtaking blue-chip names like BAYC.

The sale, announced on May 30, included the IP rights to Moonbirds, Mythics, and Oddities. Orange Cap Games, known for its hybrid trading card game Vibes, now holds creative control of the projects. Yuga Labs CEO Greg Solano remarked that Moonbirds needed “a team whose whole world is the birds,” affirming his confidence in the new owner’s direction.

Meanwhile, Yuga Labs is making waves again with a controversial proposal to dissolve the ApeCoin DAO, branding it “sluggish, noisy, and unserious.” The newly proposed ApeCo entity would absorb the DAO’s assets and governance functions, effectively ending the tokenholder-led structure launched in 2022.

ApeCo vs. DAO: The battle for the future - ApeCo would assume full control of the ecosystem’s assets: smart contracts, staking reserves, and all governance tools. It would prioritize capital allocation to core pillars: ApeChain, Bored Ape Yacht Club, and Otherside. Tokenholders would lose all governance rights under this transition.

Despite some criticism from long-time members, community response has leaned supportive, with many applauding the shift toward clearer leadership and faster execution.

NFTs rebound, but can DAOs keep up? - The Moonbirds resurgence aligns with broader signs of life in NFTs. May marked the first month of sales growth in 2025, up 27% to $476 million, with unique NFT buyers increasing 50%.

But Yuga’s actions suggest a wider theme: IP consolidation and DAO fatigue. As Web3 matures, the days of experimental decentralization may be giving way to more focused execution under centralized leadership.

Crypto scams uncovered

  • In May 2025, Ngo Thi Theu was arrested in Thailand for her alleged role in a $300 million cryptocurrency scam that defrauded over 2,600 victims. Theu was a key figure in a network operating 44 call centers across Vietnam, leading to an Interpol red notice and international law enforcement collaboration.

  • The U.S. Department of Justice has seized over $7.74 million linked to an illegal employment and cryptocurrency scheme operated by North Korean IT workers. These individuals posed as U.S.-based remote workers to infiltrate companies and funnel earnings into illicit crypto transactions. 

  • Launched in January 2025, the $Trump memecoin, endorsed by President Donald Trump, experienced a rapid rise and fall in value. While Trump and his associates profited from the venture, critics argue that the coin's promotion blurs lines between governance and personal gain, raising ethical and national security concerns.

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Top 3 coins of the day

FARTCOIN (FARTCOIN)

Key points:

  • At press time, FARTCOIN was trading at $1.04, up 1.47% over the last 24 hours.

  • The Madrid Ribbon remained largely red, though today's candle pushed into the green zone with improving RSI.

What you should know:

FARTCOIN showed a modest rebound from its recent $0.90 low, climbing back above the $1.00 psychological support. The Madrid Ribbon, which had fully flipped red during the recent downtrend, displayed early signs of easing bearish pressure as the price nudged into the upper green bands. However, the trend structure has not yet shifted decisively bullish. The RSI climbed slightly to 42.7, still below the neutral 50 mark, signaling that bearish momentum had slowed but not reversed. Volume spiked significantly during the latest green candle, indicating growing buyer interest at lower levels. Part of this renewed interest followed news of Fartcoin being added to Coinbase’s 2025 listing roadmap, which triggered a 12–14% intraday rally and boosted market visibility. While the listing remains contingent on infrastructure readiness, traders are eyeing it as a potential turning point. If the token clears the $1.15 resistance, a short-term recovery toward $1.25–$1.30 may materialize. On the flip side, losing the $1.00 floor again could open the path to $0.93 and potentially $0.80 as outlined in recent technical risk analyses.

Monero (XMR)

Key points:

  • At press time, XMR was trading at $319, up 0.74% over the last 24 hours.

  • The Awesome Oscillator remained red with declining momentum, while the 9-day SMA hovered above current price levels.

What you should know:

Monero continued its short-term recovery after bouncing from the $300 psychological support zone. However, the price struggled to reclaim the 9-day simple moving average, which had previously acted as dynamic support during its parabolic rise in May. The recent lower highs signaled fading bullish strength, with XMR now facing resistance near the $330–$340 range. The Awesome Oscillator extended its red streak, confirming cooling momentum despite today’s minor uptick. Meanwhile, trading volume remained neutral, showing no strong conviction from either bulls or bears. If XMR breaks back above the 9-day SMA, the next resistance lies near $345, followed by $365. On the downside, losing $310 could reintroduce pressure toward $290 and even $270 if sentiment deteriorates.

OFFICIAL TRUMP (TRUMP)

Key points:

  • At press time, TRUMP was trading at $9.69, down 0.41% over the last 24 hours.

  • The MACD remained in bearish territory, while the price broke below the lower Bollinger Band.

What you should know:

TRUMP continued its downward slide after failing to reclaim the $12 resistance zone, slipping below the lower Bollinger Band, a sign of increased selling pressure. The MACD maintained its bearish alignment with the signal line, underscoring the ongoing negative sentiment. This decline coincided with heightened controversy surrounding the TRUMP memecoin. A public feud between Donald Trump and Elon Musk, sparked by Trump’s election-related remarks, and legal issues tied to the TRUMP Wallet have cast uncertainty over the token’s future. The official TRUMP account’s silence and a cease-and-desist order have further shaken investor confidence. Additionally, Pump.fun's offer to back an Elon Musk-backed rival token has intensified speculation, contributing to bearish sentiment across the memecoin space. The breakdown from the Bollinger Band midpoint last week triggered stronger downside momentum, with the token now testing the $9.50–$9.70 support range. Volume picked up slightly, suggesting sellers may be gaining control. If this support fails to hold, further downside toward $8.20–$8.50 is possible. On the flip side, reclaiming $11 could help TRUMP recover toward the $12.50–$13 resistance zone.

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