Dogecoin Drops 4% Amid Global Trade Tensions and Weak Risk Sentiment

Dogecoin (DOGE) fell 4% over the 24 hours ending August 3 at 04:00 (UTC+7), sliding from $0.20 to a low of $0.19 as global macroeconomic uncertainty and risk-off sentiment hit meme coins. The drop followed sharp spikes in trading activity, signaling heavy institutional outflows from high-volatility assets.

During the session, DOGE traded within a volatile $0.015 range (7.14%), dipping to $0.188 before recovering to close at $0.195. Trading volume surged significantly, peaking at 918.53M at 06:00 and 502.81M at 14:00—well above the 24-hour average of 385.67M—indicating strong conviction among sellers. A key support zone emerged between $0.188 and $0.190, where volume spiked to 667.44M, triggering a short-lived rebound to $0.194. However, resistance at $0.202–$0.203 repeatedly rejected upward moves.

The sell-off coincided with renewed global trade tensions after the expiration of a reciprocal tariff framework, leaving 92 countries facing higher trade barriers. The Federal Reserve’s decision to keep interest rates unchanged this week, while closely monitoring trade data, has lowered market expectations for a September rate cut—adding pressure on high-beta cryptocurrencies like DOGE.

Technically, the $0.188–$0.190 support zone absorbed peak selling, suggesting some accumulation interest. The final hour of trading saw DOGE slip 0.53% from $0.196 to $0.195, with resistance at $0.1963 and support near $0.1952. Although volumes normalized late in the session, they remain above average, signaling potential for continued volatility.

Traders are now watching whether DOGE can defend the $0.19 level or face further declines amid broader altcoin weakness. Key risks remain tied to U.S. interest rate policy, shifting global trade dynamics, and liquidity moving away from meme assets.