Dogecoin Price Near Key Support as On-Chain Data Hints at Potential Stabilization

Dogecoin price is currently under pressure as the broader chart structure continues to lean bearish, but on-chain data suggests the recent breakdown may not be fully confirmed yet. DOGE is trading close to the lower boundary of a declining pattern, often described as a bear flag, which keeps downside risks active. If the critical support zone between $0.124 and $0.120 fails, Dogecoin could face a deeper decline. However, recent shifts in holder behavior indicate that selling pressure may be cooling rather than accelerating.

One of the most notable developments is the sharp reduction in speculative supply. Data from HODL Waves shows that the 1-week-to-1-month holder cohort, typically the most aggressive short-term traders, has significantly reduced exposure. This group controlled around 7.73% of the total Dogecoin supply in late November, but that figure has dropped to approximately 2.76% by late December. Such a rapid exit suggests that weak hands may have already sold, which can reduce forced selling near support levels.

At the same time, longer-term holders appear to be slowly accumulating DOGE. The 1-year-to-2-year holder cohort has increased its share of supply from roughly 21.84% to 22.34%. While the increase is modest, it is meaningful because long-term holders tend to add when they believe downside risk is diminishing rather than expanding.

Network activity data reinforces this view. Spent coin metrics show a sharp decline in DOGE movement, falling by more than 60% over the same period. Lower coin activity often indicates that fewer holders are rushing to sell. Historically, similar slowdowns in Dogecoin activity have preceded short-term relief rallies, including a recent move earlier this month that saw DOGE rally nearly 15% within days.

From a price perspective, the $0.120 level remains the most important support to watch. A daily close below it could open the door to a move toward $0.112 or lower. On the upside, reclaiming $0.133 would signal easing selling pressure, while a stronger push above $0.138 would suggest buyers are regaining control. For now, Dogecoin sits at a critical crossroads where on-chain signals hint at stabilization, but price action will ultimately decide the next move.