Dogecoin in the Crosshairs: Will It Crash This Week?

Whale Movements and Bearish Pressure

The first warning came on May 31 when Whale Alert tracked three massive transactions of 104 million DOGE each to Coinbase wallets, totaling 312 million DOGE, or over $58 million at the time. Transfers of this size often signal selling intent, and the market reacted accordingly.

Data from Santiment and CryptoQuant confirms that DOGE supply on exchanges has steadily increased over the past month, often a red flag that traders are preparing to liquidate rather than hold.

Technicals: A Balancing Act

Dogecoin is currently trading below both its 50-day and 100-day exponential moving averages (EMAs), a typically bearish trend indicator. The MACD (Moving Average Convergence Divergence) also leans bearish, though there’s growing speculation about a potential reversal.

Some analysts at Bitedge point to an inverse head and shoulders pattern forming on the weekly chart — a classic bottoming setup if confirmed. Moreover, RSI (Relative Strength Index) is beginning to diverge bullishly from price, a sign that downward momentum may be weakening.

Still, DOGE must hold support at $0.1865. A decisive break could drag the coin down to $0.1642, or even $0.1422 in a severe correction. A close above $0.214, however, could trigger a short-term recovery rally toward $0.24–$0.26.

Elon Musk’s Exit and the DOGE Department

Elon Musk, Dogecoin’s unofficial mascot, played a huge role in legitimizing the meme coin. From Twitter memes to SNL skits, Musk’s influence fueled explosive price runs in 2021 and kept DOGE culturally relevant for years.

In 2024, Musk briefly served as a special government advisor in the Trump administration’s ironically named Department of Government Efficiency (DOGE) — more political theater than crypto governance. However, his presence helped Dogecoin stay in the headlines.

On May 30, 2025, Musk resigned from that role, citing issues with Trump’s “One Big Beautiful Bill.” Though he reiterated support for government spending reforms, his exit removed a key media hook for Dogecoin. The community noticed — and so did the market.

The Dogecoin Dilemma in 2025

The broader crypto environment has shifted. Bitcoin surged to a record $111,970 in May but has since pulled back to around $104,000. Meme coins like Shiba Inu, PEPE, and Floki are suffering double-digit weekly losses, with retail appetite waning and institutional capital steering clear.

Unlike Ethereum or Solana, Dogecoin has no smart contracts, no major DeFi integrations, and no updated development roadmap. It doesn’t compete on utility — it relies on brand recognition, social media virality, and an enthusiastic community.

That’s the Dogecoin dilemma: without continuous hype or utility, can a meme coin stay relevant in a maturing market?

Right now, sentiment is fragile. Liquidity in the meme coin sector is drying up, and DOGE’s reliance on Elon Musk, who has other priorities, puts it at further risk. The meme magic that once made Dogecoin untouchable is losing its grip, replaced by hard questions about long-term viability.

Still a Chance for a Bounce?

Despite growing skepticism, DOGE isn’t done yet. Its high decentralization, broad accessibility, and meme status still give it an edge over lesser-known coins. And while Musk is no longer in the spotlight, even a single tweet could reignite a short-term rally.

If DOGE can hold the $0.1865 support level, avoid major whale-driven dumps, and catch a favorable wave of altcoin sentiment, it might climb back toward $0.22 or higher. Traders are watching key resistance levels and social sentiment closely.

But make no mistake: without fresh narratives, Dogecoin’s time in the spotlight could fade fast. Whether it rebounds or breaks depends on whether the community and the market still believe in the meme.