Recently, the price of Dogecoin (DOGE) fell to $0.0690, breaking below the $0.07 mark. Overseas cryptocurrency media outlet CoinGape analyzed that this decline was influenced by a broader market reduction in leverage and a contraction in investor sentiment due to U.S.-Iran tensions.

According to CoinGape, the total market capitalization of the cryptocurrency market declined by 0.96% to $2.22 trillion. As liquidation volumes increased, selling pressure driven by macroeconomic uncertainty intensified. In this atmosphere, Bitcoin traded around $65,000, while Ethereum dropped to the $1,880 level, giving up most of its weekly gains. XRP and Dogecoin also showed weakness, reflecting a trend of investors reducing their exposure to risk assets.

In particular, Dogecoin has been testing support levels since late 2024 (local time) and is currently approaching its lowest trading range of 2025. While fresh capital inflows into spot ETFs could spark a rebound and are drawing market attention, CoinGape reported that sluggish investor sentiment, mixed outlooks surrounding the U.S. Federal Reserve (Fed), and technical weakness are limiting a short-term recovery. It added that a sustained influx of buying pressure is necessary for a trend reversal.

According to a CoinGape report citing SoSoValue data, the Dogecoin spot ETF recorded a net inflow of $345,130 on July 21 (local time). This marks the first net inflow recorded in over a month, breaking a streak of no capital inflows since June 17 (local time). However, on July 23 (local time), the daily net inflow returned to zero.

Currently, the cumulative net inflow of Dogecoin spot ETFs stands at $12.12 million, with total net assets of $9.88 million, representing approximately 0.09% of Dogecoin's market capitalization. Based on recent tallies, the total trading volume stood at $265,040.

Among individual products, Grayscale's GDOG recorded the largest scale with a cumulative net inflow of $11.3 million and net assets of $6.78 million. 21Shares' TDOG posted a cumulative net inflow of $2.19 million and net assets of $2.65 million. Meanwhile, Bitwise's BWOW showed a cumulative net outflow of $1.38 million, with net assets tallied at approximately $453,880. According to CoinGape, all three products closed down 4.61% to 4.92% on the day.

As of the time of writing, Dogecoin was trading at $0.0693, down 1% on the 4-hour chart. With strong selling pressure continuing, it has slipped below the $0.07 support level, with the short-term support identified around $0.0680. CoinGape analyzed that there is a possibility of buying pressure re-entering at this level.

Looking at technical indicators, the Relative Strength Index (RSI) is at 34.51, approaching oversold territory. Meanwhile, the Chaikin Money Flow (CMF) remains positive at 0.08, indicating that some capital is still flowing into the market.

CoinGape projected that to improve the short-term trend, Dogecoin needs to reclaim $0.07, and it is subsequently important to break through the $0.0720 resistance level. If it decisively surpasses $0.0720, upside potential could open up to $0.0740 and $0.0760. Conversely, if the $0.0680 support level breaks, there is also a risk of further decline to $0.0660.

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