Dogecoin (DOGE) hovered near $0.072 on Thursday, inching close to its yearly low of $0.069 as traders shy away from risk amid escalating geopolitical conflicts.
The US military has just wrapped up its 11th night of strikes targeting Iranian drone sites and hangars. Iran retaliated with attacks on US military positions in Bahrain, Kuwait, and Jordan. Iranian forces also hit two oil tankers near the Strait of Hormuz, while Yemeni Houthis targeted Saudi oil tankers in the Red Sea.
President Trump warned of further strikes against Iranian infrastructure if assaults on vessels continue. These developments pushed oil prices up and stirred inflation fears, with the chance of a Fed rate hike in July jumping to 33.7%, up sharply from about 12% last week.
This hawkish Fed outlook weighs on risk assets like Dogecoin. Open interest on DOGE derivatives climbed to 15.44 billion coins, even as prices dropped, signaling fresh short positions entering the market.
The long-to-short ratio for DOGE fell to 0.88, suggesting more traders expect the price to decline than rise. Dogecoin remains below its 50-, 100-, and 200-day moving averages, with an RSI near 38, pointing to mild bearish momentum. The MACD indicator stays flat just above zero, showing weak market energy.
Yet, analyst Ali Martinez highlighted a rare consecutive weekly TD Sequential buy signal appearing on DOGE’s chart. Historically, such signals often precede strong upward moves, making this an intriguing setup.
Martinez tweeted that DOGE “just keeps printing buy signals” and called the pattern a warning of a potential major rally. Meanwhile, crypto analyst Cryptollica observed that Dogecoin has returned to the same structural zone that marked previous major cycle lows in 2015, 2020, and 2022 a period characterized by low attention and skepticism.
