Dogecoin fell 3% to $0.1226 as year-end selling pressure pushed the token through a key support zone, keeping the meme coin pinned at the lower end of its December downtrend.
DOGE broke below $0.1248 during the session’s heaviest trading window, with volume roughly 157% above average, a sign that the move was not just a loss of liquidity but an actual breakout driven by active supply.
The drop extended a broader bearish structure that has defined DOGE’s month, with sellers repeatedly using bounces to lighten exposure and defend lower highs.
News background
- The move comes as year-end positioning continues to weigh on high-beta cryptocurrencies, with liquidity shrinking over the holidays and investors cutting risk.
- DOGE has also faced supply pressure from large holders: whale wallets distributed approximately 150 million tokens in the last five days, keeping spot rallies limited even as the price traded near range lows.
- At the same time, positioning in derivatives has remained active.
- Open interest has climbed back above $1.5 billion, suggesting futures traders are still willing to maintain exposure through 2025 even as the tone of the spot market turns defensive.
- That divergence (persistent leverage against weakening spot structure) tends to keep volatility elevated, especially when sentiment is already fragile.
Technical analysis
- DOGE break below $0.1248 is the technical pivot. That level had acted as a floor for short-term consolidation and once it gave way, the market quickly turned towards the demand zone of $0.122-$0.123.
- The breakout was confirmed in volume, with approximately 857 million DOGE changing hands during the decisive leg down. This is consistent with distribution rather than a slow decline, and explains why bounces have had a hard time finding continuation: sellers have been there for every push towards $0.1270.
- From a structural point of view, DOGE remains stuck in a descending channel with consecutive lower highs. Momentum is at its limit (the RSI is around 37 points, due to oversold conditions), but oversold readings alone have not been enough to reverse the trend, particularly in the late December tapes, where liquidity is tight and selling can be persistent.
Price Action Summary
- DOGE fell to $0.1226 after breaking below the $0.1248 support on above-average volume
- $0.1270 now marks the first resistance level after the breakout
- Whale wallets have distributed approximately 150 million DOGE in five days, keeping rallies limited
- Open interest rebuilt above $1.5 billion even as spot structure weakened
What traders should know
Trading is now easy: DOGE is at its next level of decision.
- If $0.1226 holds and the price recovers $0.1248 quickly, the move will likely resolve into another range-bound bounce towards $0.1270. This would fit the recent pattern of short covering rallies failing due to overall supply.
- If $0.1226 fails, the next downside magnet is near $0.118, where the previous demand pockets and the lower boundary of the channel converge. In that scenario, any rebound towards $0.1248 would likely be treated as resistance unless spot volume decisively changes from selling-driven to buying-driven.
For now, the tape reads as a breakout from supply overheads, and with year-end liquidity still tight, the next clean breakout of the level could occur quicker than usual.
