Year End Pressure for DOGE
While the market was hoping for one last rally to close out 2025, Dogecoin (DOGE) moved in the opposite direction. The leading memecoin recorded a significant drop, bringing its price back toward the critical level of $0.123, breaking away from the consolidation phase observed in recent weeks.
This bearish momentum is primarily explained by seasonal factors. The end of the fiscal year prompts traders to take profits or realize losses (tax-loss harvesting), generating sufficient selling pressure to trigger the breakdown of a key support.
DOGE’s inability to defend this technical level triggered a cascade of liquidations, accelerating the retracement. Market sentiment shifted toward short-term fear, with investors concerned about capitulation before the start of the new year.
Rising Open Interest: Imminent Volatility
Despite the decline in spot price, activity in the futures markets remains intense. Open Interest on Dogecoin has surpassed $1.5 billion, creating a divergence between a declining price and rising open interest, often a harbinger of volatility.
Two scenarios are emerging. A short squeeze could occur if short positions dominate, while an acceleration of the decline remains possible if long positions with high leverage were to be liquidated below $0.120.
Dogecoin thus finds itself at a pivotal point. Defending the $0.120 zone is crucial to hope for a technical rebound, while failure could open the door to $0.10, a major psychological threshold. Volumes and the evolution of Open Interest will be decisive in anticipating the next major move.
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