DOGE (Dogecoin) down 2.91% in the past 24 hours, currently at $0.12

Gate News Bot message, December 30th, according to CoinMarketCap data, as of press time, DOGE (Dogecoin) is trading at $0.12, down 2.91% in the past 24 hours, with a high of $0.13 and a low of $0.12, and a 24-hour trading volume of $992 million. The current market capitalization is approximately $20.605 billion, down $618 million from yesterday.

Important recent news about DOGE:

1️⃣ Short-term speculative funds are accelerating their exit, while long-term holders are gradually accumulating

On-chain holdings data shows that the proportion of short-term traders holding for 1 week to 1 month has sharply decreased from 7.73% at the end of November to 2.76% in late December, a decline of over 64%. This large-scale early withdrawal of short-term funds helps to ease panic selling pressure near support levels. In contrast, the share of long-term holders (holding periods of 1 to 2 years) has increased from 21.84% to 22.34%, a modest rise but generally seen as an early sign of diminishing downside risk, reflecting a positive divergence in market bullish and bearish structures.

2️⃣ Rapid decline in on-chain activity indicates the selling pressure release is nearing completion

The total tokens spent across the network has significantly shrunk, with DOGE transfer volume 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 signals that the short-term selling pressure has nearly been released, creating room for a rebound. The ongoing decline in activity at this stage indicates market participants are largely on the sidelines, and extreme selling pressure may have been mostly exhausted, creating conditions for price stabilization near key support levels.

3️⃣ Volatility expectations in the derivatives market are heating up alongside technical challenges

Dogecoin futures trading volume surged approximately 53,000% in a short period, reaching $260 million, with daily trading volume once spiking to 639 million DOGE, about double the average level. This significant increase in derivatives positions reflects a clear rise in volatility expectations. As a typical high-beta asset, DOGE is especially sensitive to position changes and liquidity contraction. 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 faces 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 coins’ relative attractiveness

The 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 more apparent. In contrast, AI tokens are gradually becoming core assets in the crypto market. For example, AI public chain projects like Bittensor (TAO) still maintain market caps above early 2025 levels, whereas DOGE has fallen about 50% during the same period. This market divergence reflects a reassessment of “long-term value” versus “short-term hype,” with AI tokens demonstrating stronger resilience in volatility and capital retention. This shift exerts structural pressure on meme coins like DOGE.

5️⃣ Active leveraged token trading on Gate platform provides trading depth support

Gate ETF’s trading volume in the past 30 days is about $5 billion, supporting 256 tokens and providing ample liquidity. Leveraged tokens like DOGE5L have been active, attracting many traders. The platform employs daily scheduled and unscheduled rebalancing mechanisms, triggering instant rebalancing during sharp market fluctuations to automatically bring leverage back to target levels, effectively maintaining actual leverage within a healthy and stable range, offering a more controlled trading experience for market participants. This system design provides a structured risk management framework for DOGE trading.

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