Dogecoin Rebounds 4.3% After $2B Sell-Off, But Trump Tariffs Stir Doubt

Dogecoin isn't just following technical patterns anymore it's now entangled in political controversy. Billy Markus, the co-creator...

Written by: Arslan Butt • Friday, June 6, 2025 • 2 min read

• Last updated: Friday, June 6, 2025

Quick overview

Billy Markus criticized Trump's trade policies, linking them to potential economic damage and political scandals.
Elon Musk echoed concerns about tariffs possibly leading to a recession by mid-2025.
Dogecoin (DOGE) dropped 7.10% amid rising political tensions and is struggling to recover above key resistance levels.
Traders should watch for a breakout above $0.1803 for potential short-term gains, while being cautious of market volatility.

Dogecoin isn’t just following technical patterns anymore it’s now entangled in political controversy. Billy Markus, the co-creator of the popular meme coin, has stirred the pot by openly criticizing Trump’s aggressive trade policies in a tweet that quickly gained traction.

The timing couldn’t be more sensitive, with global markets already on edge and trade uncertainty adding extra volatility.

Political Drama Hits Crypto Markets

Trump’s revived “America First” trade agenda is putting tariffs on steel, aluminum, and electronics back in the spotlight. While supporters argue these measures protect American industries, critics—including tech billionaire Elon Musk—are sounding alarm bells about potential economic damage. Musk responded directly to Markus’s post, expressing concerns that these policies could push the economy into recession by mid-2025.

But Markus didn’t stop at economic criticism. He ventured into more controversial territory by alluding to Trump’s alleged connections to unreleased Epstein documents. Whether this was speculative commentary or genuine concern, it’s clear that when influential figures like Musk and Markus speak, both crypto and traditional markets take notice.

In the midst of this political crossfire:

Elon Musk warned that tariffs could trigger a 2025 recession
Markus criticized trade policy while hinting at political scandals
DOGE dropped 7.10% amid broader risk-off sentiment
Meanwhile, TRUMP Coin faces legal challenges, highlighting the risks of politically-themed tokens

DOGE Technical Analysis: Fighting for Recovery

Despite the political noise, Dogecoin is attempting to recover after its recent sharp decline. Currently trading near $0.1762, it’s bounced from a low of $0.1682—a rebound that aligns with the 0% Fibonacci extension level and shows early signs of strength.

However, the path forward remains challenging. DOGE is still trapped beneath a descending trendline and the 50-period EMA ($0.1877), both of which continue to cap bullish attempts. On the positive side, price action is showing some resilience by trading just above the 0.236 Fibonacci level at $0.1739, and a MACD crossover appears to be developing, suggesting weakening downside pressure.

For any meaningful recovery, bulls need to push above the critical $0.1803 level (the 0.382 Fibonacci retracement) to generate broader upside momentum.

Trade Idea: Watch for a Break Above $0.1803

If you’re considering a trade, here’s a potential setup to watch:

Should DOGE manage a convincing close above $0.1803, it could trigger a short-term breakout.

Dogecoin Price Chart - Source: Tradingview — Dogecoin Price Chart – Source: Tradingview

Entry point: $0.1810
Target: $0.1873 (where both the 50-period EMA and trendline resistance converge)
Stop-loss: $0.1730

This setup might appeal to traders looking for a quick bounce, but it’s important to note that volume must support the move. Without strong buying volume, any rally could quickly fizzle out.

If the bulls fail to reclaim key resistance levels, DOGE could fall back to test $0.1682—or potentially drop even further in this politically charged environment.

As always with cryptocurrency trading, especially one as sentiment-driven as Dogecoin, be mindful that both technical and now political factors could shift the landscape rapidly.

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ABOUT THE AUTHOR See More

Arslan Butt

Lead Markets Analyst – Multi-Asset (FX, Commodities, Crypto)

Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics. His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker. His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.