Summary Dogecoin stabilizes near $0.126 after months of corrective pressure. Price holds above the $0.123-0.125 support zone despite heavy overhead resistance. Leverage is being reduced as spot demand remains muted. By Parshwa Turakhiya Dogecoin ( DOGE-USD ) is trading near $0.126 on December 26, holding just above recent lows after a prolonged drawdown that has steadily unwound the speculative excess built earlier in the year. The decline, which began after the late-summer peak, has stripped DOGE of much of its momentum-driven premium. The market’s behavior reflects balance rather than conviction, with both sides cautious after an extended unwind. What stands out now is not renewed weakness, but a noticeable loss of downside urgency. Selling pressure has eased, yet buyers remain measured, stepping in selectively rather than chasing rebounds. The result is a slow, grinding consolidation rather than a sharp relief rally. Downtrend intact, but selling pressure fades On the daily chart, Dogecoin remains firmly below its declining EMA structure, which continues to define the dominant trend. The 20-day EMA near $0.133 has acted as persistent overhead resistance throughout December, rejecting multiple recovery attempts. Above that, the 50-day EMA around $0.148 and the 100-day EMA near $0.169 reinforce the bearish slope, while the 200-day EMA near $0.187 highlights how far price has retraced from earlier cycle highs. DOGE price dynamics (Source: TradingView) This stacked configuration confirms that the broader trend remains corrective, and recent rebounds lack the strength to challenge higher-time frame resistance. However, the character of price action has shifted. DOGE has begun to stabilize above the $0.123-0.125 zone, an area that has absorbed repeated downside tests without triggering follow-through selling. That behavior suggests seller exhaustion rather than renewed distribution, even as sentiment remains subdued. Momentum indicators support this view. Daily RSI is holding in the high-30s to low-40s, a zone associated with stabilization rather than trend continuation. This is not a momentum regime that typically produces sharp selloffs. Instead, it often precedes range formation after prolonged declines. While there is no bullish divergence yet, the absence of further RSI deterioration points to fatigue among sellers rather than fresh bearish conviction. Short-term structure improves but remains reactive Lower-time frame price action adds important nuance. On the 30-minute chart, Dogecoin has flipped its Supertrend back to the upside following a liquidity-driven dip toward $0.122 earlier in the week. Parabolic SAR dots have shifted beneath price, confirming near-term stabilization and consistent dip-buying. Intraday pullbacks have been shallow, suggesting short-term demand is active at lower levels. That said, the rebound remains contained within a broader downtrend channel. Price has yet to establish a sustained sequence of higher highs, and upside attempts continue to stall quickly. Intraday strength is reactive rather than directional, reflecting tactical positioning rather than a structural shift in trend control. Flows and leverage signal caution, not accumulation Spot flow data reinforces the cautious tone. Dogecoin has experienced persistent net outflows across recent months, including continued negative flows through December. The most recent readings show only modest movement, indicating that large holders are not aggressively accumulating at current levels. This explains why price is stabilizing rather than accelerating. Supply is being absorbed gradually, not chased. Derivatives positioning remains fragile. Trading volume has increased around recent volatility, while open interest has edged lower. This combination suggests leverage is being reduced rather than rebuilt, a typical late-stage correction dynamic. Long-short ratios remain skewed toward longs across major exchanges, leaving bullish positioning exposed if price fails to reclaim resistance. Liquidation data shows long liquidations continue to outweigh shorts, confirming that optimism is still being tested rather than rewarded. In earlier analysis, Dogecoin’s rally earlier in the year was framed as sentiment- and liquidity-driven rather than structurally supported. The subsequent drawdown has played out as expected, with leverage unwinding gradually rather than collapsing abruptly. The current consolidation aligns with that thesis, reflecting digestion of prior excess rather than the start of a new impulsive move. Dogecoin is transitioning from decline to consolidation. The $0.123-0.125 zone remains critical support, while $0.133 and $0.148 define the first resistance levels that bulls must reclaim to shift the short-term narrative. A sustained move above the 20-day EMA, supported by improving spot flows and reduced long-side leverage, would signal that the corrective phase is likely nearing completion. Until that confirmation arrives, DOGE remains in a repair phase, quietly stabilizing rather than rebounding aggressively, as the market waits for a clear catalyst to define the next directional move. This material may contain third-party opinions; none of the data and information on this webpage constitutes investment advice according to our Disclaimer . While we adhere to strict Editorial Integrity , this post may contain references to products from our partners. Original Post
