Dog-themed cryptocurrency Dogecoin is facing a crucial test on the market as the price attempts last-minute moves at 2025’s close.
According to CoinGecko data, Dogecoin is down 62% on a yearly basis as meme coins failed to produce the desired traction this year. The dog coin is down 16.39% so far in December, on track for its third red month since September.
Oct. 11’s flash crash did not help Dogecoin price either as it fell to a low of $0.13. This drop exposed weakness below, which caused Dogecoin to fall further in the markets.
DOGE/USD Monthly Chart, Courtesy: TradingViewDogecoin has stagnated in a range as cryptocurrencies are yet to recover from a weeks-long sell-off that began in October with the liquidation of some $19 billion worth of leveraged positions.
This largely affected the market, with traders reluctant to bet big on a comeback, but it seems now there are early signs of a sentiment shift.
Crucial test emerges
At press time, Dogecoin was trading up 0.03% in the last 24 hours to $0.1244 as it stays in a tight range. This raises the chances of a breakout if this continues, with the range breaking either up or down.
The most visible near-term supply is at $0.1260-$0.1264, while demand lies in the $0.1208-$0.1220 zone.
A sustained break below $0.122 risks a further drop toward $0.1280 and then $0.1250, while a reset requires Dogecoin returning above $0.133 to unwind the short-term downtrend.
However, time does not seem to be on the side of the bulls; rebound attempts across the market have been met by selling, with traders taking profits on slight rallies.
Going into 2026, traders will be assessing the Federal Reserve’s monetary rate path, with implications for the broader crypto market.
Source: https://u.today/dogecoin-faces-crucial-test-on-market-as-price-drops-62-in-2025
