Dogecoin continues to trade under pressure as price action remains weak near a key technical support area.
The token is hovering around the $0.120 level after declining roughly 2% over the past 24 hours.
On a monthly basis, Dogecoin is down more than 12%, reflecting sustained bearish sentiment.
Despite the downtrend, the pace of losses has begun to slow in recent sessions.
Technical indicators still point to a bearish structure on higher time frames.
However, momentum readings suggest selling pressure may be losing strength.
Traders are closely watching whether price breaks decisively below current support.
A confirmed breakdown could open the door to deeper downside movement.
At the same time, on-chain data shows signals that challenge the bearish narrative.
Speculative holders appear to have exited positions aggressively earlier in the decline.
This wave of exits has reduced the risk of forced selling near current levels.
Analysts say much of the short-term leverage has already been flushed from the market.
With fewer weak hands remaining, downside pressure may be less severe than before.
Long-term Dogecoin holders have quietly increased their positions during the pullback.
Accumulation by longer-term participants often signals confidence in medium-term stability.
On-chain activity has dropped sharply during the recent sell-off.
Network activity has declined by more than 60% compared with recent peaks.
Lower transaction and wallet activity suggest reduced speculative churn.
Historically, periods of low activity have coincided with price consolidation phases.
Reduced activity can also ease immediate selling pressure in the market.
Analysts note that falling activity does not guarantee a price reversal.
However, it may indicate that the most aggressive selling phase has passed.
Dogecoin’s current price zone is seen as a decision point for traders.
Bulls are watching for signs of stabilisation or a short-term base formation.
Bears are monitoring for a clean breakdown that could confirm trend continuation.
Market participants say broader crypto sentiment remains cautious.
Thin liquidity conditions have increased sensitivity to sudden price moves.
Any spike in volume could quickly shift the near-term outlook.
Technical support near $0.120 remains critical in the short term.
A sustained hold above that level could encourage range-bound trading.
Failure to defend support may trigger another wave of selling.
Analysts stress that the next few trading sessions will be decisive.
The interaction between price structure and on-chain signals is drawing attention.
Traders are balancing bearish chart patterns against improving holder behaviour.
Dogecoin’s outlook now hinges on whether demand emerges at current levels.
Market watchers say patience is required as signals remain mixed.
Until a clear move occurs, volatility is expected to remain elevated.
At the time of reporting, Dogecoin price was $0.1288.