Dogecoin Price Volatility Returns as Market Weighs Bullish Indicators Against Recent Dip

[Ben Graham]

The Dogecoin price has entered another period of volatility as traders attempt to weigh improving technical signals against renewed short-term weakness. The memecoin has been shifting between modest recoveries and sudden pullbacks, creating a landscape where both bullish and bearish narratives remain active.

With macro uncertainty, DOGE ETF inflows, exchange outflows, and key chart patterns emerging at the same time, the market is now deciding which direction will dominate heading into late December.

Mixed Trading Conditions Shape Short-Term Direction for Dogecoin

The Dogecoin price slipped back below the $0.145 region after failing to hold above $0.150 earlier in the week. The latest dip saw price break below an hourly trend line, touching lows near $0.131 before stabilizing. DOGE now trades below $0.140 on lower timeframes, with immediate resistance forming around $0.142 and $0.145.

Yet the broader view remains less gloomy. The weekly chart shows a developing MACD bullish crossover, complemented by rising histogram bars. Historically, this signal has marked early phases of momentum recovery.

The Dogecoin price continues to defend the long-standing $0.13–$0.15 support band, a range that has held for nearly two years. Repeated rebounds from the $0.135 zone highlight ongoing buyer activity despite intraday volatility.

Traders are also watching the upper boundary of the recent range at $0.155–$0.156. A close above this area would signal a break from the consolidation pattern that has persisted since late November.

ETF Volume and Exchange Outflows Show Accumulation

While the spot price fluctuates, underlying market activity points to steady participation. The Dogecoin ETF has recorded $3.23 million in daily trading volume, adding a layer of institutional-style flows that did not exist in previous cycles.

Similarly, exchange data shows between $20 million and $60 million in recent outflows, suggesting large holders continue moving tokens off trading platforms.

This combination, ETF demand and declining exchange balances, implies accumulation, particularly during price weakness. With fewer tokens available for immediate sale, selling pressure could ease if these trends continue.

Traders Await Breakout Signals as Volatility Tightens

Dogecoin’s trading volume has surged more than 60% at times this week, reflecting renewed interest ahead of broader market catalysts, including the Fed Reserve’s policy decision. DOGE now trades in a tightening range between $0.131 – $0.156, with analysts noting that prolonged compression often precedes larger moves.

Technical targets remain unchanged: $0.18–$0.20 as the first major resistance, followed by $0.21 and $0.27. A move toward the broader $0.30 barrier would require a break above short-term resistance and confirmation that buyers can sustain momentum.

The Dogecoin price sits at the center of contrasting signals, accumulation on the one hand and near-term weakness on the other, leaving the market to determine which will take priority as volatility returns.

Cover image from ChatGPT, DOGEUSD chart from Tradingview