Dogecoin drops toward $0.07 as US-Iran conflict sparks crypto rout

Dogecoin extended its decline toward $0.07 on Thursday as escalating military conflict between the US and Iran pushed cryptocurrency traders into risk-off mode.

Dogecoin fell toward $0.07 on Thursday, extending recent losses as escalating US-Iran military conflict drove a broad sell-off across cryptocurrency markets.

Iran launched attacks targeting US military bases in the Middle East following American strikes on multiple locations inside Iran, according to official statements from both governments. The US also reinstated sanctions on Iranian oil exports, citing attacks on commercial vessels transiting the Strait of Hormuz.

The meme coin mirrored weakness in Bitcoin and major altcoins as traders reduced exposure to riskier assets. The geopolitical shock compounds existing headwinds for Dogecoin, which had already been trading in a downtrend amid waning retail interest in meme coins.

The $0.07 level represents a critical support zone for Dogecoin. A break below that threshold could trigger further liquidations and accelerate downside across altcoins, particularly if the US-Iran situation escalates without diplomatic intervention.

$0.07 Support in Focus

The $0.07 level has acted as a psychological floor for Dogecoin in recent months. A breakdown below that mark would open the path toward the $0.065 range, a level not seen since late 2025, based on historical trading data.

The broader crypto market has shed billions in combined market capitalization since the conflict escalated. Bitcoin, which often trades in correlation with altcoins during macro shocks, also declined as traders rotated out of risk assets. The US dollar strengthened during the session, adding further pressure on crypto prices as the dollar typically moves inversely to digital assets.

Geopolitical Risk Reshapes Trading

The US-Iran confrontation introduces a new layer of uncertainty for crypto markets. The reinstatement of oil sanctions adds a supply-side shock to global energy markets, which could feed into inflation expectations and influence central bank policy — both factors that historically affect crypto risk appetite.

For Dogecoin specifically, the token's high retail ownership makes it particularly sensitive to shifts in risk sentiment. Retail traders tend to reduce speculative positions first during geopolitical crises, concentrating selling pressure on meme coins and smaller-cap altcoins.

This article is for informational purposes only and does not constitute investment advice.