DOGE (Dogecoin) increased by 2.21% in the last 24 hours

Gate News Bot Message, December 29th, according to CoinMarketCap data, as of press time, DOGE (Dogecoin) is trading at $0.13, up 2.21% in the past 24 hours, with a high of $0.13 and a low of $0.12. The 24-hour trading volume reached $548 million. The current market capitalization is approximately $21.267 billion, an increase of $461 million from yesterday.

Important recent news about DOGE:

1️⃣ Short-term speculative funds continue to withdraw, while long-term accumulation gradually strengthens

On-chain data shows significant changes in the holdings structure of short-term traders. The proportion of short-term funds held for 1 week to 1 month dropped sharply from 7.73% at the end of November to 2.76% in late December, a decrease of over 64%. This large-scale early exit of short-term funds helps alleviate panic selling pressure near support levels and lays the foundation for price stabilization. Meanwhile, long-term holders are beginning to show a moderate increase, with the share of addresses holding for 1 to 2 years rising from 21.84% to 22.34%. Although the increase is limited, it is generally seen as an early signal that downside risks are gradually diminishing. This divergence in bullish and bearish structures indicates that market participants’ confidence patterns are adjusting.

2️⃣ Rapid decline in on-chain activity signals the end of selling pressure release

The total tokens spent across the network has significantly shrunk, with DOGE transfers dropping from about 250 million to less than 100 million, a decrease of over 60%. Historical experience suggests that a rapid cooling of on-chain activity often indicates that short-term selling pressure has nearly been exhausted, providing room for subsequent rebounds. The current continuous decline in on-chain activity reflects a strong wait-and-see attitude among market participants, and extreme selling pressure may have been largely released, creating conditions for price stabilization near key support levels.

3️⃣ Volatility expectations in derivatives market heat up alongside technical challenges

Dogecoin futures trading volume surged approximately 53,000%, reaching $260 million, with single-day trading volume once spiking to 639 million DOGE, about double the average level. This significant increase in derivatives positions reflects a clear rise in market expectations for future volatility. As a typical high-beta asset, DOGE is especially sensitive to position changes and liquidity contraction. When key psychological price levels are touched, this characteristic often amplifies price fluctuations. The current technical structure shows the price moving along the lower boundary of a downtrend channel, forming a bearish flag pattern. The support zone at $0.124–$0.120 is under pressure, but the combination of on-chain selling pressure easing signals and derivatives mechanisms puts the price direction at a critical juncture.

4️⃣ Shift in capital allocation logic weakens meme coin attractiveness

Market saturation is changing capital allocation strategies. While speculative funds are easily attracted by short-term narratives, the fundamental issues of meme coins lacking long-term value support are becoming increasingly apparent. In contrast, AI tokens are gradually becoming central to the crypto market. For example, AI public chain projects like Bittensor (TAO) still maintain market caps above early 2025 levels, while DOGE has fallen about 50% during the same period. This market divergence reflects a reassessment of “long-term value” versus “short-term speculation” by capital. AI tokens demonstrate greater resilience in terms of volatility and capital retention, and this shift exerts structural pressure on meme coins like DOGE.

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