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- Dogecoin (DOGE) is trading below $0.070 after dropping 5% in the previous session.
- Risk-taking sentiments driven by global conflict have reduced the demand for speculative products like meme currency.
- The DOGE futures rate has fallen, while the volume of trading has increased by 76%, reflecting the volume of trading.
Dogecoin (DOGE) remained under pressure on Friday, trading below $0.070 after suffering a 5% decline in the previous trading session.
The world’s biggest memecoin has weakened along with the broader cryptocurrency market as investors reduce exposure to speculative assets amid political tensions and declining interest in the market.
Geopolitical uncertainty weighs on memecoins
Dogecoin has historically been one of the most sentiment-driven cryptocurrencies, and its value is closely related to investor interest and market capitalization.
Recent political developments, including the escalating tensions between the United States and Iran, have made investors more cautious.
The decline in market confidence is reflected in CoinMarketCap’s Fear & Greed Index, which fell to 37 on Friday from 40 earlier in the week, indicating that sentiment is moving towards fear.
While the demand for speculation is shrinking, meme coins like DOGE have suffered more in trading than most cryptocurrencies.
The market created by Dogecoin presents a mixed picture. According to CoinGlass, DOGE the future is open to interest fell to about $1.10 billion, reflecting a slight reduction in well-received positions.
However, the volume of futures trading rose 76% to about $1.38 billion, meaning that traders remain active despite the recent drop in prices.
The increase in business activity along with the drop in prices reflects the instability of the economy rather than the development of new confidence.
Additional derivatives indicators continue to favor sellers. DOGE futures were down around -0.0016%, indicating that short sellers are paying off long positions.
Non-cash funds often reflect market expectations and long-term demand.
DOGE remains subject to high technical standards
From a technical perspective, Dogecoin continues to trade within well-established parameters.
The meme currency remains below the 50-day EMA at $0.0788 and the 200-day EMA at $0.1032
Remaining below these indicators will cause the short-term and medium-term sentiment to settle in favor of sellers.
Momentum indicators show that the bearish trend continues, although DOGE is approaching an oversold level.
The Relative Strength Index (RSI) is nearing 31, indicating that sales remain strong, and the stock is nearing the point where buyers can start looking at the price.
Meanwhile, the Moving Average Convergence Divergence (MACD) is testing its mechanical line, indicating that the bearish force may continue to build if the sellers maintain control.
The next important support level is at $0.0641. A daily close below this level can accelerate losses and trigger further selling.
On the other hand, consumers must overcome several levels of resistance before they become successful:
- $0.0700 – Immediate rejection
- $0.0777 – Second resistance
- $0.0788 – 50-day EMA
Together, these levels create a resistance zone that the bulls must re-examine to show potential change.
Dogecoin remains vulnerable as market weakness and global uncertainty continue to weigh on the speculative economy.
Unless the major markets improve and DOGE regains the $0.070–$0.079 resistance zone, the meme currency may remain on track to test support near $0.0641 in the coming sessions.
