Dogecoin has been struggling to hold onto its value as geopolitical tensions between the US and Iran continue to escalate. The meme coin dropped towards $0.07 on Thursday, mirroring weakness in major digital assets.
The conflict has prompted investors to move away from higher-risk assets, including cryptocurrencies, amid concerns of a wider regional conflict.
The Crypto Fear & Greed Index currently stands at 26, placing the market firmly within the Extreme Fear zone. This level of fear typically indicates reduced buying activity and increased market volatility.
Despite recent price weakness, derivatives data suggest some investors remain optimistic about Dogecoin's longer-term outlook, with perpetual futures Open Interest increasing to $1 billion.