Dogecoin’s price has been in a steep decline over the past few months, and the downtrend may continue as the rare and bearish “death cross” pattern nears. The cryptocurrency fell to a low of $0.019 on Sunday, its weakest level since November 7 last year. This marks a decline of over 60% from its highest point in November.

Dogecoin’s price drop is in line with broader losses across meme coins, as other popular tokens such as Shiba Inu, Pepe, and Dogwifhat have also declined by more than 50% over the same period.

Another factor weighing on Dogecoin is Elon Musk’s financial and political situation. Musk, a key backer of the memecoin, has seen his net worth shrink by $103 billion this year, bringing his total wealth down to $330 billion. Additionally, his relationship with Donald Trump appears to be growing tense. Reports from The New York Times indicate that Musk clashed with cabinet officials, including Marco Rubio, in a tense meeting. These disagreements have reportedly led Trump to take steps to rein him in.

Musk currently leads the Department of Government Efficiency (DOGE), but recent tensions raise speculation that he may step down from this role. Data from Kalshi shows there is now a 54% chance that Musk will exit before July 2026. Since Dogecoin gained popularity largely due to Musk’s influence, his potential departure from DOGE could have psychological effects on investors and add to the token’s downside pressure.

Technical Indicators Signal More Weakness

From a technical standpoint, Dogecoin remains in a strong bearish trend as investors stay on the sidelines. A key development is the approaching death cross formation, which occurs when the 50-day Exponential Moving Average (EMA) crosses below the 200-day EMA. The last time this pattern formed, in July 2024, Dogecoin’s price dropped by 40% in the following period.

Additionally, the token has moved below the 61.8% Fibonacci retracement level at $0.2360, reinforcing the bearish outlook. Indicators such as the Moving Average Convergence Divergence (MACD) and the Relative Strength Index (RSI) continue to weaken, signaling increasing selling pressure. The next key support level is at $0.1680, corresponding to the 78.6% Fibonacci retracement level. A break below this could lead to further losses, potentially sending Dogecoin down to around $0.070 —c. 60% below its current price.

With bearish technical signals and growing uncertainty around Musk’s influence, Dogecoin faces significant risks of further decline in the coming weeks. This presents both a threat and potentially an opportunity.

DISCLAIMER: Cryptocurrencies carry high risk. This post is for informational purposes only and does not constitute financial advice. Unity does not recommend investments. Crypto investing may result in capital loss.