- Dogecoin tumbles over 8% amid geopolitical tensions and profit-taking pressure
- Bearish indicators and rising sell volume hint at extended downside for Dogecoin
- Futures market cools as options volume spikes, signaling trader caution on DOGE
Dogecoin took the sharpest fall among top ten cryptocurrencies Thursday, dropping over 8% as global uncertainty spooked risk asset holders. Rising tensions in the Middle East especially reports of an Israeli airstrike on an Iranian nuclear facility sent a wave of panic across financial markets.
Profit-Taking After Inflation Surprise Adds to Pressure
Besides geopolitical fears, the crypto market also reacted to U.S. inflation data released Wednesday. The Consumer Price Index (CPI) showed inflation cooled in May, which, while positive on the surface, triggered widespread profit-taking.
Bitcoin and Ethereum saw moderate declines, but Dogecoin, already showing signs of weakness, sank deeper in the afternoon session. The price hovered around $0.1911, which marked the day’s high. From there, DOGE steadily lost ground, hitting a low of $0.1710 before a minor bounce to $0.1744.
The price action pointed to a consistent downtrend, showing no signs of a sustainable reversal. While there was some support in the $0.1760–$0.1780 zone, the selloff overwhelmed these levels quickly. If the $0.1710 support breaks, Dogecoin could face further declines in the coming sessions.
Bearish Indicators Signal Caution Ahead
Technical indicators reinforced the bearish outlook. The MACD showed a recent bearish crossover, and the histogram remained in negative territory, reflecting weakening momentum.
Furthermore, the Relative Strength Index (RSI) stood at 37.81, nearing oversold levels. While this may suggest a bounce is possible, the overall sentiment remains negative.
Market volume rose significantly, with 24-hour trading volume increasing by over 28% to $1.87 billion. However, this spike likely indicates panic-driven selling rather than organic growth.
Additionally, Coinglass data derivatives market painted a mixed picture. While options activity surged with a 223% jump in volume open interest in futures dropped nearly 13%, suggesting cautious positioning by traders.
