Dogecoin price has been under pressure. The token is down around 2% in the last 24 hours and more than 12% in the last month. Price development has weakened, but the decline is slowing down.
Although the chart structure is still bearish, on-chain behavior suggests that the downward break may not be decided yet. The coming days will determine whether DOGE drops deeper or stabilizes around current levels.
Dogecoin price under pressure as short-term supply disappears
Dogecoin is approaching the lower boundary of a declining price structure, with a bear flag about to form. This maintains the risk of further declines, especially if the support level around $ 0.124-$ 0.120 fails. What stands out, however, is how speculative supply has behaved while the price has fallen.
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The group holding between one week and one month, typically the most aggressive swing traders, has significantly reduced its exposure, according to the HODL Waves indicator. This metric classifies holders by time.
On November 29, this group controlled approximately 7.73% of the Dogecoin supply. As of December 23, this share has decreased to approximately 2.76%. This is a significant reduction in speculative positioning in a short time.
This is important because these holders tend to amplify price declines when they panic-sell. Their exit often reduces the forced selling pressure near the support level.
Long-term investors buy quietly while activity on the coin decreases
As the speculative supply shrinks, long-term holders are showing early signs of accumulation. The group holding DOGE for 1 to 2 years has increased its share of the Dogecoin supply from around 21.84% to 22.34%. The increase is small, but the signal is important.
These holders usually only enter when they believe that downside risk is beginning to decrease.
Activity for the coin across the network, measured through the spent coins indicator, supports this assessment. Spent coins activity has dropped sharply. The spent coins age band metric has fallen from about 251,97 million DOGE to around 94,34 million DOGE. This corresponds to a decline of over 60% in coin movement.
Lower activity for coins may mean that fewer holders are in a hurry to move or sell tokens. Historically, similar falls in activity have come just before short-term rises in Dogecoin. Earlier in December, a similar decline occurred before a rise from around $0.132 to $0.151 — an increase of nearly 15% — over three days.
This does not guarantee a new rise, but it shows that selling pressure is cooling down rather than accelerating.
Key Dogecoin price levels that determine falls or rises
The technical picture now depends on a narrow price range. The $0.120 level remains the most important support level in the short term. A clear daily close below this will expose Dogecoin price to further decline towards the $0.112 zone and potentially lower if momentum builds.
On the upside, the bullish scenario depends on whether the nearest resistance level is reclaimed. A move back above $0.133 will signal that selling pressure is easing. A stronger intake of $0.138 will confirm that buyers are regaining control, and that the recent decline was a correction, not the start of a larger fall.
Simply put, Dogecoin is at a crossroads. Price development still involves risk, but on-chain data shows that speculative supply is leaving the market, long-term investors are slowly taking over, and overall activity of Dogecoin is decreasing. If the support level holds, these factors may help stabilize the price. If it breaks, there is still a basis for further decline.
