Dogecoin has declined 6% as the memecoin tests a critical support level near $0.135, extending a month-long period of selling pressure. The asset has failed to reclaim key trend levels since early October, leaving market structure firmly in favor of sellers.
What Happened: Price Tests Key Support
Dogecoin is approaching a pivotal support zone at $0.135 after persistent downward pressure throughout November. The memecoin has remained capped beneath declining exponential moving averages positioned between $0.154 and $0.202, with each rebound attempt this month reversing at a dominant descending trendline. This pattern has prevented the asset from establishing any sustained upward momentum.
Recent market data shows a $5.7 million spot outflow, continuing a multi-month pattern of distribution that began in the second half of the year.
Open interest in derivatives markets dropped more than 9%, indicating broad position unwinding among traders. The Parabolic SAR indicator remains above price action on daily charts, reflecting uninterrupted bearish pressure during the decline.
The current approach to the $0.135 level is developing under weaker conditions compared to prior corrections when this support held. A breakdown from this zone would expose additional liquidity pockets at $0.128 and $0.118. Earlier in the year, green spot flow spikes supported rallies toward $0.30, but the market has since shifted to consistent outflows.
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Why It Matters: Weak Structure Signals Caution
The declining open interest and persistent spot outflows indicate traders are unwinding positions rather than adding exposure at lower levels. This type of market contraction typically accompanies prolonged corrective phases and suggests participants are waiting for deeper prices or clearer signals before committing capital.
Long-short ratios across major exchanges show mild long bias, but price action has not validated such positioning.
Multiple liquidation waves hit long positions each time Dogecoin attempted to press above short-term moving averages, with failed rallies quickly reversing at the descending trendline.
The absence of accumulation from large holders underscores difficulty in forming a durable base at current price levels.
Traders must now watch whether buyers can defend the $0.135 support band and reclaim $0.154 to ease immediate pressure. Clearing $0.173 near the 50-day EMA represents the next milestone required to shift momentum away from the current downtrend. A failure to hold the current zone would reinforce bearish structure and expose the deeper $0.12 to $0.11 range.
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