DOGE (Dogecoin) down 3.43% in the last 24 hours

Gate News Bot Message, December 26th, according to CoinMarketCap data, as of press time, DOGE (Dogecoin) is trading at $0.12, down 3.43% in the past 24 hours, with a high of $0.13 and a low of $0.12, and a 24-hour trading volume of $790 million. The current market capitalization is approximately $18.892 billion, a decrease of $671 million from yesterday.

Dogecoin is an open-source peer-to-peer digital currency known for its friendly community and unique culture. As an unexpectedly born cryptocurrency movement, Dogecoin aims to make people smile. It utilizes blockchain technology to build a highly secure decentralized information storage system through a public ledger maintained by a network of computer nodes. The Dogecoin community adheres to the philosophy of “Do Only Good Every Day,” focusing on mutual support, spreading cryptocurrency knowledge, charitable activities, and community building. Dogecoin has practical monetary value and usability, with very low transaction fees, and has been used as real currency since its inception.

Important recent news about DOGE:

1️⃣ Short-term speculative funds continue to withdraw, long-term holders gradually increase holdings

On-chain data shows that short-term speculators holding for 1 week to 1 month have significantly reduced their positions. This group once controlled about 7.73% of the circulating supply of Dogecoin at the end of November, but by late December, it had fallen to about 2.76%. The early exit of large short-term funds helps alleviate panic selling pressure near support levels. Meanwhile, long-term holders are beginning to show signs of mild accumulation, with addresses holding for 1 to 2 years increasing their share from approximately 21.84% to 22.34%, often seen as an early sign of weakening downside risk.

2️⃣ On-chain activity rapidly cools down, signaling selling pressure release

The total tokens spent across the network has decreased significantly, with DOGE transfer volume dropping from about 250 million coins to less than 100 million, a decline of over 60%. Historical experience indicates that a rapid cooling of on-chain activity often signals the completion of short-term selling pressure release, creating conditions for a price rebound. The current decline in on-chain activity reflects a market with strong wait-and-see sentiment, and extreme selling pressure may have nearly been exhausted.

3️⃣ Derivative trading volume surges, indicating increased volatility

Dogecoin futures trading volume has surged approximately 53,000%, reaching $260 million. Even as spot prices weaken, derivative positions have increased markedly, reflecting heightened market expectations for future volatility. Trading volume spiked around 16:00 on December 23 to $639 million, about double the average level of that day, confirming a change in market structure. As a typical high-beta crypto asset, DOGE is particularly sensitive to position changes and liquidity contraction. When key round-number levels are broken, this characteristic often amplifies price swings.

4️⃣ Technical deterioration and key support levels face tests

After breaking below the important psychological level of $0.13, the price is running along the lower edge of a downward channel and forming a typical bearish flag pattern. The support zone between $0.124 and $0.120 is under pressure. If this support fails, the price could further decline toward the $0.090 region. Short-term charts show DOGE trading below short-term moving averages, with momentum indicators weakening, and no clear divergence signals yet. Multiple attempts to rebound above $0.13 have been met with selling, and only a sustained move back above $0.13 could signal a significant improvement in trend.

5️⃣ Speculative enthusiasm shifts from meme coins to AI tokens

The market saturation is changing capital allocation logic. Speculative funds are more easily attracted by short-term narratives, but the fundamentals of meme coins often cannot support long-term value. In contrast, AI tokens are gradually becoming central to the crypto market. For example, the AI public chain project Bittensor (TAO) still has a market cap above its early 2025 level, while one of the largest meme coins, Dogecoin, has fallen about 50% over the same period. This contrast reflects a reassessment of “long-term value” versus “short-term hype.” AI tokens demonstrate greater resilience in volatility and capital retention, which exerts downward pressure on meme coins like DOGE.

This message is not investment advice; please be aware of market volatility risks.