Dogecoin Price Tumbles Amid Geopolitical Tensions and Market Pressure

Dogecoin Drops as Global Uncertainty Rattles Crypto Markets

The price of Dogecoin has seen a sharp decline over the past week, falling over 13% amid a broader cryptocurrency sell-off driven by escalating geopolitical tensions in the Middle East and cautious signals from the U.S. Federal Reserve. This drop puts the popular memecoin back in the spotlight for investors—this time for reasons of concern.

Weekend Crash and Trading Volume Spike

The recent escalation in conflict in the Middle East caused a wave of uncertainty that spilled into global financial markets. Cryptocurrencies, often classified as high-risk assets, were hit particularly hard. Dogecoin dropped from around $0.176 to as low as $0.1533 within a few days. During this period, more than 700 million DOGE tokens were traded in just one hour, signaling high volatility and panic-driven activity across exchanges.

Among the top 10 cryptocurrencies by market capitalization, Dogecoin ranked second-worst in both the 24-hour and 7-day performance charts, with Ethereum leading the declines over the week and BNB slightly ahead in short-term losses.

Technical Support and Reversal Patterns

Despite the downturn, technical analysts noted that Dogecoin found support near $0.164, a level that could represent a potential double-bottom pattern. The coin currently hovers between $0.168 and $0.171, showing signs of consolidation. Chart watchers are closely monitoring for a breakout, with some suggesting that a falling wedge formation is developing—historically a bullish reversal pattern.

Weak Momentum and Lingering Concerns

This recent drop is just the latest chapter in what has been a prolonged period of weak performance for Dogecoin. Hopes of a major price surge tied to Donald Trump’s political comeback have faded. Speculation about a rift between Trump and Elon Musk has further deflated optimism in some corners of the DOGE community. The current price action mirrors the bearish mood that last dominated the coin’s movement during the crypto winter of 2022.

Can Dogecoin Bounce Back?

While the short-term outlook remains uncertain, there are still two major developments that could potentially reverse Dogecoin’s fortunes before the end of 2025.

The first is the possible approval of a spot Dogecoin ETF in the United States. Applications from firms such as 21Shares, Bitwise, and Grayscale are currently under review by the Securities and Exchange Commission (SEC). If approved, a DOGE ETF could open the door to institutional investment and fresh capital from Wall Street. However, approval does not automatically guarantee adoption by major wallet providers and trading platforms, so this remains a hope rather than a certainty.

The second key factor is Elon Musk’s X platform, formerly known as Twitter. There is ongoing speculation that Dogecoin may be added as a payment option on X. Musk has long been an advocate of the coin, and if the token is officially integrated into the platform’s payment system, it could serve as a powerful catalyst for a price rally.

Conclusion

Dogecoin is currently facing significant headwinds, having dropped over 13% in a single week due to global instability and tighter monetary conditions. Yet, optimism persists among long-term holders. Whether it’s the potential for an ETF or the influence of Musk’s platforms, Dogecoin may still have a few cards to play before 2025 is over. For now, investors remain watchful—hoping for a turn of momentum in a market that remains as unpredictable as ever.