Dogecoin Price Slips Below Key Support as Year-End Selling Pressure Intensifies

Dogecoin (DOGE) slid roughly 3% to trade near $0.1226, extending its December downtrend as year-end selling pressure continued to weigh on the meme coin. The decline pushed DOGE decisively below the $0.1248 support level, a zone that had previously held during short-term consolidation. This breakdown occurred during the session’s most active trading window, with volume running about 157% above average, signaling that the move was driven by real selling interest rather than thin holiday liquidity.

The loss of $0.1248 reinforced the broader bearish structure that has defined Dogecoin’s price action this month. Rebounds throughout December have consistently been sold into, resulting in a pattern of lower highs and keeping price pinned near the lower boundary of its descending channel. During the decisive leg lower, approximately 857 million DOGE tokens changed hands, a volume profile more consistent with distribution than a gradual drift, which helps explain why recovery attempts have struggled to gain traction.

Market context continues to favor caution. High-beta cryptocurrencies like Dogecoin are facing headwinds from year-end portfolio adjustments, reduced liquidity into the holidays, and a general trimming of risk. Adding to the pressure, large holders have been actively distributing supply. Whale wallets are estimated to have offloaded around 150 million DOGE over the past five days, capping spot market rallies even as prices hover near range lows.

Despite the weak spot structure, derivatives activity remains elevated. Open interest has climbed back above $1.5 billion, suggesting futures traders are still willing to maintain exposure heading into 2025. This divergence between leveraged positioning and soft spot demand often keeps volatility elevated, especially when sentiment is fragile.

From a technical perspective, DOGE is now at a critical decision point. If the $0.1226 area holds and price quickly reclaims $0.1248, the move could resolve into another short-covering bounce toward the $0.1270 resistance zone. However, if $0.1226 fails, the next downside target sits near $0.118, where prior demand and the lower channel boundary align. With liquidity still thin, any clear break could unfold faster than usual, keeping traders on alert.