Dogecoin declined by 3% to $0.1226 as selling pressure at year-end pushed the token below a critical support level, keeping the meme coin anchored to the lower range of its December downtrend.
DOGE fell under $0.1248 during the busiest trading period of the session, with trading volume about 157% above average — indicating that this was not merely a temporary fluctuation, but a significant break driven by active selling.
This decline extends a broader bearish trend that has characterized DOGE’s month, as sellers consistently used rebounds to reduce exposure and defend lower-high levels.
News background
- This movement occurs as year-end positioning continues to exert pressure on high-beta cryptocurrencies, with liquidity thinning as the holidays approach and investors reduce risk.
- DOGE is also experiencing supply pressure from larger holders: whale wallets have distributed approximately 150 million tokens over the last five days, capping spot rallies even as the price hovers near range lows.
- Simultaneously, derivatives positioning has remained active.
- Open interest has risen above $1.5 billion, indicating that futures traders are still inclined to maintain their positions into 2025, even as the spot market sentiment turns cautious.
- This divergence — persistent leverage amid a weakening spot structure — tends to keep volatility high, particularly when sentiment is already fragile.
Technical analysis
- The breach below $0.1248 serves as the technical pivot. This level had been acting as support for short-term consolidation, and once it gave way, the market quickly rotated into the $0.122–$0.123 demand zone.
- The breakdown was confirmed by volume, with around 857 million DOGE changing hands during the decisive downward move. This is consistent with distribution rather than a slow decline, explaining why rebounds have struggled for continuation: sellers have emerged on every uptick toward $0.1270.
- From a structural viewpoint, DOGE is still trapped in a descending channel with consecutive lower highs. Momentum indicators are stretched — RSI around 37 suggests oversold conditions — but oversold readings alone have not been enough to reverse the trend, especially in late December when liquidity is thin and selling can be relentless.
Price action summary
- DOGE dipped to $0.1226 after breaking below the $0.1248 support on above-average volume.
- The first resistance level following this breakdown is now at $0.1270.
- Whale wallets have distributed about 150 million DOGE over five days, limiting rally potential.
- Open interest has rebounded to above $1.5B despite a weakening spot structure.
What traders should know
The trade is now quite clear: DOGE is poised at its next decision level.
- If $0.1226 holds and price quickly recovers to $0.1248, the movement is likely to resolve into another range-bound bounce back toward $0.1270. This aligns with the recent trend of short-covering rallies that falter under supply pressures.
- If $0.1226 fails, the next downward target is around $0.118, where prior demand zones and the lower boundary of the channel meet. In this scenario, any rebound toward $0.1248 would likely be regarded as resistance unless spot volume shifts decisively from sell-led to buy-led.
Currently, the market suggests a breakdown with supply overhead — and with year-end liquidity still low, the next clear level breach could happen more swiftly than usual.
