Dogecoin slipped 3% to $0.1226 as year-end selling pressure pushed the token through a key support zone, keeping the meme coin stuck at the lower end of its December downtrend.
DOGE fell below $0.1248 during the session’s most important trading window, with volume about 157% above average – a sign that the move was not just a thin liquidity drift, but a real breakout driven by active supply.
The decline extended a broader bearish pattern that defined DOGE’s month, with sellers repeatedly using rebounds to lighten exposure and defend lower levels.
News context
- The move comes as year-end positioning continues to weigh on high-beta crypto, with liquidity diminishing during the holidays and reduced risk for investors.
- DOGE also faced supply pressure from large holders: whale wallets distributed around 150 million tokens over the past five days, limiting spot rallies even as prices traded near the lows of the range.
- At the same time, positioning on derivatives remained active.
- Open interest has risen back above $1.5 billion, suggesting that futures traders are still willing to maintain exposure through 2025, even if the tone of the spot market turns defensive.
- This divergence – persistent leverage in the face of weakening spot structure – tends to keep volatility high, especially when sentiment is already fragile.
Technical analysis
- DOGE’s break below $0.1248 is the technical pivot. This level served as a floor for short-term consolidation, and once it gave way, the market quickly flipped into the $0.122 to $0.123 demand pocket.
- The breakdown was confirmed in volume, with approximately 857 million DOGE changing hands during the decisive leg. This is consistent with the distribution rather than a slow decline, and it explains why rebounds have struggled to find follow-through: sellers have been present at every push towards $0.1270.
- Structurally, DOGE remains trapped in a descending channel with consecutive lower highs. Momentum is tight – RSI around 37 points in oversold conditions – but oversold numbers alone have not been enough to reverse the trend, especially in late December bands where liquidity is low and selling can be persistent.
Price Action Summary
- DOGE fell to $0.1226 after falling below the $0.1248 support on above-average volume.
- $0.1270 now marks the first resistance level after the breakdown
- Whale wallets distributed around 150 million DOGE over five days, limiting rallies.
- Open interest has rebuilt above $1.5 billion, even as the spot structure has weakened
What Traders Need to Know
The trade is now simple: DOGE is sitting at its next decision level.
- If $0.1226 holds and the price quickly recovers $0.1248, the move will likely turn into another bounce limited to $0.1270. This would fit the recent pattern of short covering rallies failing due to overhead supply.
- If $0.1226 fails, the next bearish magnet lies near $0.118, where previous pockets of demand and the lower boundary of the channel converge. In this scenario, any bounce towards $0.1248 would likely be treated as resistance unless spot volume decisively shifts from a selling trend to a buying trend.
For now, the tape reads like a breakdown in supply overhead – and with end-of-year cash still low, the next clean-level breakdown could happen more quickly than usual.
