Dogecoin Drops 7.5% Amid Geopolitical Tensions and Fed Policy Uncertainty

Dogecoin (DOGE) slid 7.5% in the past 24 hours, dropping from $0.176 to $0.164 as rising geopolitical tensions and cautious central bank policy rattled risk markets. The memecoin’s decline mirrored broader altcoin weakness as investors moved away from high-beta assets.

The sell-off followed intensified conflict between Israel and Iran over the weekend, triggering a global risk-off sentiment. At the same time, expectations that the U.S. Federal Reserve will maintain interest rates at 4.25%–4.50% and persist with balance sheet reduction further pressured crypto assets.

DOGE’s heaviest losses occurred between 15:00 and 16:00, when nearly 700 million tokens changed hands. The price fell through key support but quickly found buyers at $0.164, leading to a modest recovery. By late session, the token bounced into a consolidation range between $0.168 and $0.171, forming a potential technical base.

A brief bullish move at 01:21 pushed DOGE to $0.1719 before facing resistance and fading. Since then, the price has traced a descending triangle, with resistance capped near $0.171 and support just above $0.170. Declining trading volume, with most recent hourly candles under 3 million, suggests market indecision.

Despite short-term pressure, the formation of a double bottom near $0.164 has sparked some optimism among technical analysts. However, until macroeconomic risks subside and market volume returns, traders may remain cautious.

As Dogecoin hovers near a key support level, investors will be watching for a breakout or breakdown to determine the next trend direction. Volatility is expected to persist as geopolitical and monetary uncertainties continue to shape market sentiment.