Dogecoin Sinks 7% as Risk Appetite Fades Across Markets

Dogecoin Falls to Two-Week Low as Geopolitical Fears and Fed Policy Pressure Markets

The popular dog-themed memecoin dropped sharply on Tuesday, touching a two-week low amid escalating geopolitical tensions and continued macroeconomic uncertainty.

Dogecoin slumped by as much as 7.5% over the past 24 hours, sliding from $0.176 to $0.164 as traders reacted to fresh developments in the Middle East and hawkish signals from central banks.

Market Drivers

Geopolitical Tensions: Conflict between Israel and Iran intensified over the weekend, triggering risk aversion across global markets. Crypto assets were not spared, with DOGE initially plunging nearly 8% before recovering slightly above critical support levels.
Federal Reserve Policy: Investors are bracing for the Federal Reserve’s next moves, with rates expected to remain steady between 4.25% and 4.50% while balance sheet reduction continues. The macroeconomic backdrop has weighed heavily on risk assets, including high-beta cryptocurrencies like Dogecoin.
Technical Patterns: Despite the broader sell-off, DOGE found buying interest around the $0.164 mark. Analysts point to a potential double-bottom formation, which could serve as a base for consolidation if market sentiment improves.
Uncertain Outlook: With trading volumes tapering and volatility easing, many traders are waiting for clearer signals to determine the market’s next major move.

Price Action Highlights

The steepest decline occurred between 15:00 and 16:00 UTC, when Dogecoin saw nearly 700 million tokens traded and broke through key support levels. Buyers reemerged at $0.164, helping DOGE trade within a tighter range of $0.168 to $0.171.

Late in the session, a bullish surge briefly pushed prices to $0.1719 around 01:21 UTC, but gains were swiftly reversed. Price action has since formed a descending triangle pattern, suggesting lower highs converging against stable support levels.

Technical Recap

DOGE dropped from $0.176 to $0.164, marking a 6.7% decline before stabilizing.
The heaviest selling occurred from 15:00–16:00 UTC, with volumes near 700 million.
A support floor has formed around $0.164, with consolidation between $0.168–$0.171.
A bullish spike to $0.1719 at 01:21 UTC was quickly rejected.
Trading volumes fell significantly in later hours, with most candles under 3 million.
A descending triangle pattern has emerged, with resistance near $0.171 and support around $0.1705.

Dogecoin’s future direction now hinges on broader market sentiment and potential geopolitical developments in the days ahead.