Dogecoin has been struggling to recover from its recent losses, with a noticeable drop in demand over the past few days. As the year draws to a close, many investors are choosing to wait and see the volatility of this transition period.

Unless market activity picks up, DOGE's price could fall further.

Dogecoin whales play a key role in preventing the altcoin from falling further. Deals over $100,000 surged to 9,410, the highest level since November 2021. The resurgence of high-value trades indicates strong whale activity, which has historically been key to stabilizing Dogecoin in turbulent times.

If the whales maintain their current level of activity, they could provide the necessary liquidity and market support to prevent Dogecoin from falling further. However, as broader investor engagement remains subdued, this support must continue. For Dogecoin to regain its footing, a continued influx of high-value transactions is essential.

Dogecoin's Chaikin Money Flow (CMF) indicator is hovering near the neutral line, indicating that very little money is flowing into the market. This suggests that investors remain cautious, possibly due to uncertain broader market conditions or waning interest in Dogecoin.

The lack of significant inflows reflects the hesitancy of market participants. Without a significant uptick in buying pressure, Dogecoin's macro momentum could weaken further, leaving it dependent on whale activity and external catalysts to maintain its price level.

Dogecoin is currently trading at $0.32, a level it is trying to establish as a floor of support. Ensuring this level is crucial for Dogecoin to recover from its recent 32% plunge from $0.46. Maintaining this support could signal a possible shift in investor sentiment.

DOGE's next goal is to turn $0.36 into a support level and continue the rally to $0.40. Achieving this milestone will restore confidence in cryptocurrencies, paving the way for continued growth and increased market activity.

However, if support at $0.32 is not secured, it could fall to $0.28. Such a decline would invalidate the bullish outlook, leaving Dogecoin vulnerable to further declines. Monitoring these key levels will be crucial for traders and investors in the coming days.