Dogecoin Drops 10% as Global Tensions Rise — Is $0.08 Next?

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• Dogecoin’s decline is driven by falling network activity and heavy market selling.
  
• Futures and spot flows show traders reducing exposure rather than buying dips.
  
• Holding above $0.08 remains critical to avoid deeper downside.

Dogecoin extended its recent losses as global risk sentiment worsened following escalating tensions between Israel and Iran. The memecoin failed to hold key resistance near $0.106 and has since printed three consecutive sessions of lower lows, signaling growing bearish momentum across the market.

At the time of writing, DOGE hovered around $0.089 after slipping below its short-term moving average. The move wiped out much of its late-February recovery and reinforced the view that traders remain cautious amid broader crypto weakness.

Network Activity Collapse Signals Falling Demand

Beyond price action, on-chain metrics show a sharp deterioration in user engagement. Data from Santiment indicates that daily active addresses dropped more than 78% this month, sliding from roughly 87,000 to about 19,000.

The asset’s Price DAA Divergence also sank to a two-month low, suggesting declining participation and fading organic demand. Such metrics often act as early warning signs, showing that fewer users are interacting with the network or opening new positions.

When participation shrinks this quickly, rallies tend to struggle because there is little new capital entering the ecosystem to support higher prices.

Futures and Spot Markets Show Heavy Selling

Derivatives activity reinforces the bearish narrative. According to figures tracked by CoinGlass, futures flows turned sharply negative as outflows surpassed inflows, pointing to traders reducing exposure rather than betting on recovery.

Liquidations also accelerated as price dropped below $0.09, with long positions absorbing most of the forced exits. On spot markets, sell volume outpaced buy volume, confirming that downside pressure is broad-based rather than isolated to leverage traders.

Together, these signals suggest market participants are actively de-risking rather than positioning for a bounce.

Technical Indicators Point to Further Weakness

Momentum indicators add to the cautious outlook. Directional movement readings tracked on TradingView show the negative trend index strengthening while bullish momentum weakens, a pattern typically associated with continued downside pressure.

Also Read: Dogecoin Hits $0.10 as BlackRock Buys $289M Bitcoin — Is a Crypto Rally Brewing?

If selling persists, DOGE could drift toward the $0.08 zone. A reversal would likely require reclaiming short-term moving averages and stabilizing above the psychological $0.10 level.

Dogecoin’s recent decline reflects a combination of macro uncertainty, fading network activity, and aggressive selling across derivatives and spot markets. Until participation improves and technical resistance levels are reclaimed, the memecoin may remain vulnerable to further losses in the near term.

Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.