Dogecoin breaks support as year-end selling drags DOGE to $0.123

DOGE broke below $0.1248 during the heaviest trading window of the session, with volume running about 157% above average — a sign the move wasn’t just thin-liquidity drift, but a real break driven by active supply.

The drop extended a broader bearish structure that has defined DOGE’s month, with sellers repeatedly using rebounds to lighten exposure and defend lower-high levels.

News background

• The move comes as year-end positioning continues to weigh on high-beta crypto, with liquidity thinning into the holidays and investors trimming risk.
• DOGE has also been facing supply pressure from large holders: whale wallets distributed roughly 150 million tokens over the past five days, keeping spot rallies capped even as prices traded near range lows.
• At the same time, derivatives positioning has remained active.
• Open interest climbed back above $1.5 billion, suggesting futures traders are still willing to hold exposure into 2025 even as the spot market tone turns defensive.
• That divergence — persistent leverage against weakening spot structure — tends to keep volatility elevated, especially when sentiment is already fragile.

Technical analysis

• DOGE’s break below $0.1248 is the technical pivot. That level had been acting as a floor for short-term consolidation, and once it gave way the market rotated quickly into the $0.122–$0.123 demand pocket.
• The breakdown was volume-confirmed, with roughly 857 million DOGE changing hands during the decisive lower leg. That’s consistent with distribution rather than a slow grind down, and it explains why rebounds have struggled to find follow-through: sellers have been present on every push back toward $0.1270.
• From a structural standpoint, DOGE remains trapped in a descending channel with consecutive lower highs. Momentum is stretched — RSI around 37 points to oversold conditions — but oversold readings alone haven’t been enough to reverse the trend, particularly in late-December tapes where liquidity is thin and selling can be persistent.

Price action summary

• DOGE fell to $0.1226 after breaking below $0.1248 support on above-average volume
• $0.1270 now marks the first resistance level after the breakdown
• Whale wallets have distributed roughly 150 million DOGE over five days, keeping rallies capped
• Open interest rebuilt above $1.5B even as spot structure weakened

What traders should knowThe trade is now straightforward: DOGE is sitting on its next decision level.

• If $0.1226 holds and price reclaims $0.1248 quickly, the move likely resolves into another range-bound bounce back toward $0.1270. That would fit the recent pattern of short-covering rallies that fail under overhead supply.
• If $0.1226 fails, the next downside magnet sits near $0.118, where prior demand pockets and the lower channel boundary converge. In that scenario, any bounce back toward $0.1248 would likely be treated as resistance unless spot volume flips decisively from sell-led to buy-led.

For now, the tape reads like a breakdown with supply overhead — and with year-end liquidity still thin, the next clean level break could move faster than usual.