Dogecoin plunged by 7.5% overnight due to the Iran-Israel conflict

The Dogecoin memo token DOGE $0.17 Binance-Peg Dogecoin -0.17% Market capitalization $0.43 billion VOL. 24 hours $0.11 billion fell by 7.5% overnight, with the virtual coin dropping from $ 0.176 to $ 0.164 amid geopolitical tensions in the Middle East and tight central bank policies. The main pressure of the sales came between 15:00 and 16:00, when trading volumes reached almost 700 million coins, and the price broke through key support, Coindesk writes.

The market situation is complicated by the expectation that the US Federal Reserve will keep the discount rate at 4.25−4.5% and continue to reduce the balance sheet. All of this has a negative impact on altcoins, in particular assets with high volatility, such as Dogecoin.

Despite the sharp decline, DOGE found support at $ 0.164, where buyers became more active, allowing the price to stabilize in the range of $ 0.168-$ 0.171. Analysis of the chart indicates that a double bottom pattern may be forming, which some analysts see as a basis for consolidation.

Toward the end of the session, the price of DOGE stabilized above $ 0.170, and a short-term impulse at 01:21 raised the quotes to $ 0.1719, but buyers were unable to consolidate their success. The last hours of trading were marked by a decline in volume, with most candles showing volumes below 3 million.

Technical analysis shows the formation of a downward triangle, with resistance at $ 0.171 and support at $ 0.1705. The market is consolidating and waiting for a clearer signal for further price movement.