DOGE Drops 7% Following Weak Risk-On Demand

Dogecoin Sinks Nearly 8% as Traders Brace for Geopolitical and Economic Headwinds

Dogecoin dropped sharply on Tuesday, hitting a two-week low amid mounting geopolitical stress and ongoing macroeconomic uncertainty that have rattled crypto markets.

The meme-inspired token fell as much as 7.5% in 24 hours, retreating from $0.176 to $0.164, as investors reacted to escalating tensions in the Middle East and cautious signals from the Federal Reserve.

What’s Driving the Decline?

Middle East Conflict: Hostilities between Israel and Iran intensified over the weekend, sending shockwaves through global markets. The crypto sector was not immune, with DOGE initially sliding nearly 8% before finding a temporary floor above $0.164.
Fed Policy Outlook: The Federal Reserve is widely expected to keep rates steady in the 4.25%-4.50% range, while continuing balance sheet reductions. The uncertain economic environment is pressuring riskier assets, including altcoins like Dogecoin.
Technical Setups: Despite the selloff, DOGE saw fresh buying interest near $0.164. Analysts highlight a potential double-bottom structure forming, which could provide a foothold for stabilization if broader sentiment improves.
Market Uncertainty: With declining volatility and shrinking volumes, traders appear to be waiting for definitive cues before committing to new positions.

Trading Action Recap

DOGE saw its steepest drop during the 15:00–16:00 UTC window, when nearly 700 million tokens exchanged hands, pushing the price below key support. Buyers reentered at $0.164, nudging the price into a narrower band between $0.168 and $0.171.

Late in the session, Dogecoin briefly spiked to $0.1719 around 01:21 UTC, but the move was swiftly reversed. The price action has since formed a descending triangle pattern, signaling cautious sentiment as traders watch for the next major move.

Technical Snapshot

Dogecoin fell from $0.176 to $0.164, a 6.7% drop before stabilizing.
The sharpest selling hit from 15:00–16:00 UTC, with volumes near 700M tokens.
Support emerged at $0.164, with consolidation between $0.168–$0.171.
A quick rally reached $0.1719 at 01:21 UTC but was quickly rejected.
Volume tailed off significantly late in the session, with most candles under 3M tokens.
A descending triangle pattern has formed, with resistance at $0.171 and support around $0.1705.

Dogecoin remains under pressure, with traders weighing geopolitical risks and macroeconomic signals before making their next move.