Dogecoin (DOGE) is experiencing a partial recovery after dropping 7.10% amid rising political tensions, but traders should remain cautious due to market volatility. The cryptocurrency’s price has been entangled in controversy following tweets by its co-creator Billy Markus, who criticized Trump’s trade policies and hinted at potential connections to unreleased Epstein documents.
Markus’ comments sparked a response from Elon Musk, warning that tariffs could push the economy into recession by mid-2025. Meanwhile, TRUMP Coin faces legal challenges, highlighting the risks of politically-themed tokens.
Despite this noise, Dogecoin is attempting to recover after its recent decline. The cryptocurrency is currently trading near $0.1762 and has bounced from a low of $0.1682, which aligns with the 0% Fibonacci extension level. However, it remains trapped beneath a descending trendline and the 50-period EMA ($0.1877), both of which cap bullish attempts.
To generate broader upside momentum, bulls need to push above the critical $0.1803 level, which is the 0.382 Fibonacci retracement. Traders should watch for a breakout above this level, with a potential setup to buy:
Entry point: $0.1810
Target: $0.1873 (where both the 50-period EMA and trendline resistance converge)
Stop-loss: $0.1730
However, without strong buying volume, any rally could quickly fizzle out. The price of Dogecoin remains highly sensitive to technical and political factors, making it essential for traders to be mindful of these shifts.
Source: https://www.fxleaders.com/news/2025/06/06/dogecoin-rebounds-4-3-after-2b-sell-off-but-trump-tariffs-stir-doubt